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.)
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter22: Master Budget (master)
Section: Chapter Questions
Problem 6R
Related questions
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3aaa20b-aa03-431c-a209-6c3af75044ad%2F5176ba4f-621c-42ce-a869-3dd8dbb9e480%2Filc58iq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### 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.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Essentials of Business Analytics (MindTap Course …](https://www.bartleby.com/isbn_cover_images/9781305627734/9781305627734_smallCoverImage.gif)
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Essentials of Business Analytics (MindTap Course …](https://www.bartleby.com/isbn_cover_images/9781305627734/9781305627734_smallCoverImage.gif)
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT