An item is originally priced to sell for $85 and is marked down 40%. A customer has a coupon for an additional 5%. What is the total percent reduction and the final selling price? The total percent reduction is %. The final selling price is $
An item is originally priced to sell for $85 and is marked down 40%. A customer has a coupon for an additional 5%. What is the total percent reduction and the final selling price? The total percent reduction is %. The final selling price is $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![**Problem Statement:**
An item is originally priced to sell for $85 and is marked down 40%. A customer has a coupon for an additional 5%. What is the total percent reduction and the final selling price?
---
**Questions:**
1. The total percent reduction is []%.
2. The final selling price is $[].
---
**Explanation:**
Let's calculate the total percent reduction and the final selling price step-by-step.
1. **Calculating the 40% markdown:**
- Original price = $85
- 40% of $85 = 0.40 * 85 = $34
- Discounted price after 40% markdown = $85 - $34 = $51
2. **Applying the additional 5% coupon:**
- 5% of $51 = 0.05 * 51 = $2.55
- Final price after additional 5% reduction = $51 - $2.55 = $48.45
3. **Calculating the total percent reduction:**
- Total reduction amount = Original price - Final price = $85 - $48.45 = $36.55
- Total percent reduction = ($36.55 / $85) * 100 ≈ 43%
**Answers:**
- The total percent reduction is 43%
- The final selling price is $48.45](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3aaa20b-aa03-431c-a209-6c3af75044ad%2F8a3a2df3-7e2d-4350-82c0-4e8b1c6bc48c%2F2qkrpm4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Problem Statement:**
An item is originally priced to sell for $85 and is marked down 40%. A customer has a coupon for an additional 5%. What is the total percent reduction and the final selling price?
---
**Questions:**
1. The total percent reduction is []%.
2. The final selling price is $[].
---
**Explanation:**
Let's calculate the total percent reduction and the final selling price step-by-step.
1. **Calculating the 40% markdown:**
- Original price = $85
- 40% of $85 = 0.40 * 85 = $34
- Discounted price after 40% markdown = $85 - $34 = $51
2. **Applying the additional 5% coupon:**
- 5% of $51 = 0.05 * 51 = $2.55
- Final price after additional 5% reduction = $51 - $2.55 = $48.45
3. **Calculating the total percent reduction:**
- Total reduction amount = Original price - Final price = $85 - $48.45 = $36.55
- Total percent reduction = ($36.55 / $85) * 100 ≈ 43%
**Answers:**
- The total percent reduction is 43%
- The final selling price is $48.45
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