### Calculating Discounted Pricing: Understanding Sequential MarkdownIn this exercise, we explore how sequential discounts affect the selling price of an item.**Problem Statement:**A ladies' suit originally selling for $150 undergoes multiple markdowns:1. A 35% discount is applied for a special promotion.2. A subsequent 15% markdown off the already discounted price.3. Finally, the suit is marked down to 65% of the original price since it remains unsold.We need to determine the two intermediate sale prices and the final selling price after all markdowns.#### Steps to Solve:1. **Calculate the First Sale Price:** The original price is $$150. The first discount is 35%. - Discount Amount: $ 150 \times 0.35 = 52.50 $ - First Sale Price: $ 150 - 52.50 = 97.50 $ ```plaintext The first sale price is $97.50. (Round to the nearest cent as needed.) ```2. **Calculate the Second Sale Price:** Now, apply a 15% discount to the first sale price of $97.50. - Discount Amount: $ 97.50 \times 0.15 = 14.63 $ - Second Sale Price: $ 97.50 - 14.63 = 82.87 $ ```plaintext The second sale price is $82.87. (Round to the nearest cent as needed.) ```3. **Calculate the Final Selling Price:** Finally, the suit is marked down to 65% of the original price of $150. - Final Price: $ 150 \times 0.65 = 97.50 $ ```plaintext The final selling price is $97.50. (Round to the nearest cent as needed.) ```### Summary:To summarize:- The first sale price is $97.50.- The second sale price is $82.87.- The final selling price is $97.50. This exercise demonstrates the steps involved in applying sequential discounts to determine the final price of an item on sale, offering practical insight into markdown pricing strategies.

Lets understand the basics. Management for the purpose of attracing more sales, give discount terms…

A ladies' suit selling for $150 is marked down 35% for a special promotion. It is later marked down 15% of the sale price. Since the suit still hasn't sold, it is marked down to a price that is 65% off the original selling price. What are the two sale prices of the suit? What is the final selling price of the suit? CLE The first sale price is $ (Round to the nearest cent as needed.) The second sale price is $. (Round to the nearest cent as needed.) The final selling price is $. (Round to the nearest cent as needed.)

A ladies' suit selling for $150 is marked down 35% for a special promotion. It is later marked down 15% of the sale price. Since the suit still hasn't sold, it is marked down to a price that is 65% off the original selling price. What are the two sale prices of the suit? What is the final selling price of the suit? CLE The first sale price is $ (Round to the nearest cent as needed.) The second sale price is $. (Round to the nearest cent as needed.) The final selling price is $. (Round to the nearest cent as needed.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Computerized Accounting System

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Question

### Calculating Discounted Pricing: Understanding Sequential Markdown

In this exercise, we explore how sequential discounts affect the selling price of an item.

**Problem Statement:**
A ladies' suit originally selling for $150 undergoes multiple markdowns:
1. A 35% discount is applied for a special promotion.
2. A subsequent 15% markdown off the already discounted price.
3. Finally, the suit is marked down to 65% of the original price since it remains unsold.

We need to determine the two intermediate sale prices and the final selling price after all markdowns.

#### Steps to Solve:

1. **Calculate the First Sale Price:**
The original price is $$150. The first discount is 35%.
- Discount Amount: $ 150 \times 0.35 = 52.50 $
- First Sale Price: $ 150 - 52.50 = 97.50 $

```plaintext
The first sale price is $97.50. (Round to the nearest cent as needed.)
```

2. **Calculate the Second Sale Price:**
Now, apply a 15% discount to the first sale price of $97.50.
- Discount Amount: $ 97.50 \times 0.15 = 14.63 $
- Second Sale Price: $ 97.50 - 14.63 = 82.87 $

```plaintext
The second sale price is $82.87. (Round to the nearest cent as needed.)
```

3. **Calculate the Final Selling Price:**
Finally, the suit is marked down to 65% of the original price of $150.
- Final Price: $ 150 \times 0.65 = 97.50 $

```plaintext
The final selling price is $97.50. (Round to the nearest cent as needed.)
```

### Summary:
To summarize:
- The first sale price is $97.50.
- The second sale price is $82.87.
- The final selling price is $97.50.

This exercise demonstrates the steps involved in applying sequential discounts to determine the final price of an item on sale, offering practical insight into markdown pricing strategies.

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