Sam operates a fruit shop. He marks all his
fruit up by 40% of their cost. If the fruit
does not sell readily, he tags it with a sign
'Reduced 40%'. He has such a sign on
punnets of strawberries which cost him
75c. How much would a customer pay for
these strawberries?

Question

Sam operates a fruit shop. He marks all his
fruit up by 40% of their cost. If the fruit
does not sell readily, he tags it with a sign
'Reduced 40%'. He has such a sign on
punnets of strawberries which cost him
75c. How much would a customer pay for
these strawberries?

shane_b · Answer

Take it in 2 steps: The strawberries cost him $0.75 and he initially increases the price by 40%:

($0.75)(1.40)=$1.05 

Since they aren't selling he puts up a sign saying they are reduced by 40%: 

($1.05)(0.60)=$0.63