Customer: “I see that your new product is available for $412.50 on the website. How much is it if I buy it in the store?”
Employee: “Buying through the website gets you a 25% discount. If you buy the product in the store, it will cost you __.”
The Correct Answer and Explanation is:
Correct Answer: $550.00
Explanation:
The customer sees that the product is available online for $412.50, and the employee mentions that this online price includes a 25% discount. This means the $412.50 is 75% of the full price (because 100% – 25% = 75%).
To find the original in-store price, which does not include the discount, we must determine what 100% of the price is, given that 75% equals $412.50.
Step-by-Step Calculation:
- Understand the percentage relationship: 75% of original price=$412.5075\% \text{ of original price} = \$412.50
- Set up the equation: 0.75×Original Price=412.500.75 \times \text{Original Price} = 412.50
- Solve for Original Price: Original Price=412.500.75=550.00\text{Original Price} = \frac{412.50}{0.75} = 550.00
Conclusion:
If $412.50 is the discounted price, then the original, full price (i.e., the in-store price without the 25% discount) must be $550.00.
This type of problem is common in customer service and sales scenarios where discounts are involved. Understanding how to work backward from a percentage discount is essential. It requires recognizing which value represents the partial amount (the discounted price) and which percentage that amount corresponds to. From there, dividing by the percentage (expressed as a decimal) gives you the original total.
This approach helps ensure transparency with customers and allows employees to provide accurate information about pricing in different sales channels. It’s especially important for avoiding confusion or disputes over pricing differences between online and in-store purchases.