Furniture Warehouse bought upright freezers for $1800 less 33 1/3 % and 5%. The store’s overhead works out to 30% of cost. The freezers are initially priced so that a profit of 16 2/3 % of cost will be realized when a freezer is sold at a “15% off ” price.
a. What is the initial full rate of markup on cost?
b. During its Scratch-and-Save Sale, customers qualify for an extra discount to either 5%, 7%, or 10%. This extra discount appears when the customer scratches a ticket at the time of a purchase. It is added to the basic 15% discount, making the combined discount 20%, 22%, or 25% respectively. What is the store’s profit or loss per freezer at each of these discounts?