Question

C.B. Clothing ordered sweaters at a wholesale cost of $20 each. The store marked up the price 50 percent above the wholesale cost to use as their selling price. After every month that the sweater didn't sell, the store reduced the selling price by 20 percent. After how many monthly price reductions did the price dip below the wholesale cost?

Answer 1

Answer: 2 months

Step-by-step explanation: daddy long legs is smart

Answer 2

2 months

Explanation:

The selling price of the sweater = 0.5 x $20 = $30

For every month that the sweater doesn't sell, price is reduced by 20% = 0.2 x $30 = $6

After the first month, price is reduced by $30 - $6 = $24

After the second month, price is reduced by $24 - $6 = $18