Phase 5 Individual Project
Professor: Timothy Manzke
May 13, 2013
Colorado Technical University
Part I: Markups & Markdowns
A manufacturer produces ceiling fans at a cost of $38.25 per fan. During the summer months, it sells the fan in one of its retail outlets at a selling price of $55.00. However, during the fall and winter seasons, the manufacturer discounts its fans by 20% off the $55.00 selling price. 1. If you were to order 15 fans in the summer and 18 fans in the winter, what would be the total price paid? 2. Based on your findings above, how much would you save if you knew ahead of time that you needed a total of 33 fans for the year by buying them all in the winter? 1.) For this question the first step is to take the selling price of the fans in the summer time which is $55 dollars and multiply it by the amount of fans needed for the summer which is 15 fans; 55 x 15 = $825.00 dollars is the total price for the fans in the summer.
We next need to find out how much the total price will be for the 18 fans in the winter time so we multiply the selling price which is $55 dollars by the amount needed in the winter which is 18. 55 x 18 = $990.00 dollars is the total price for the fans in the winter before the discount Next we need to apply the 20% discount to the selling price. So as we start this process the first step is to convert the 20% into decimal format by dividing by 100;
20 / 100 = 0.20
Then we multiply the total price of the fans in the winter which is $990 by the 0.20 to find the discount amount.
990 x 0.20 = $198 dollars is the discount amount
To find the final selling price of the fans in the winter with the 20% discount applied we subtract the discount amount of $198 from the total selling price of fans in the winter which is $990. 990 – 198 = $792.00 is the amount of the 18 fans ordered in the winter with the discount applied.
The last step in this process to find the total amount of the 15 fans ordered in the summer and the 18 fans ordered in the winter with the discount applied we need to add the final price that we reached for the fans ordered in the summer which was $825.00 to the final price of the fans ordered in the winter with the discount applied which was $792.00.
825 + 792 = $1617.00 is the total price paid for fans in the summer and the winter with the winter discount applied. 2.) For this question we must calculate and compare how much we would save when buying all 33 fans in winter compare to buying them at two separate times. We do this by first taking the amount of the selling price and multiplying it by the amount of fans needed. 33 x 55 = $1815.00 is the total amount of the 33 fans without the discount applied
The next step in this process is to take the 20% discount and convert it to decimal form by dividing by 100
20 / 100 = 0.20
Now we take the $1815.00 and multiply it by the 0.20 to find out the discount amount.
1815 x 0.20 = $363.00 is the 20% discount in dollars
Finally we take the total price of the $1815.00 and subtract the discount which is $363.00
1815 – 363 = $1452.00 is the total price if all 33 fans were bought in the winter.
Now that we have the final price of both equations we take the original price of fans bought in the summer and winter and subtract the amount of fans only bought in the winter
1617 – 1452 = $165.00 dollars is the amount saved by purchasing all the fans in the winter.
Part II: Open / Closed End Credit
It’s time to go shopping! You grab your Best Purchase credit card, which has an annual interest rate of 18%. The unpaid balance on your card for the current billing cycle is $285.76. On your shopping trip, you purchase four items: a Blu-ray player, two 4-GB flash drives, and a 19-inch flat-screen television. You purchase all the items with your credit card for a total of $352.18. When the bill comes at the end of the month, you decide to pay the entire...