1. Margo purchases bulk teas from a warehouse and marks up those prices by 20% for retail sale. When teas go unsold for more than two months, Margo marks down the retail price
by 20%. She says that she is breaking even, that is, she is getting the same price for the
tea that she paid for it. Is she correct? Explain.

2. Harold works at a men’s clothing store, which marks up its retail clothing by 27%. The
store purchases pants for $74.00, suit jackets for $325.00, and dress shirts for $48.00.
How much will Harold charge a customer for two pairs of pants, three dress shirts, and a
suit jacket?