A store pays $50.00 for a coat. Its markup is 25%. Later, it puts the coat on sale at 20% off. What is the sale price of the coat?

Question

tkhunny · Answer

Insufficient Information.
There are two kinds of "Markup".  Which do we use?

anonymous · Answer

50 * 1.25 + cost of coat plus 25% markup. $62.50 is cost now. Then store decides to have a sale. figure 205 of the coats cost. .20 * 62.50. This will give you the discount. Now subtract discount from the 62.50 total to get the  cost of the coat on sale,

anonymous · Answer

20% not 205

tkhunny · Answer

That is one way to do markup.  Now the other...

anonymous · Answer

.20 * 62.50 =12.5 now 62.50 -12.50. you are back to what the store paid for the coat

anonymous · Answer

What grade are you in? this might make the difference in what tkhunny is thinking.

tkhunny · Answer

Nope.  There are still two ways.

Wholesale Markup: $50 + 25% * $50 = Retail Price
Retail Markup: $50 = (1-25%)*Retail Price

Neither is more difficult.   The problem statement just ha to tell you which it is.