C. B. Clothing ordered sweaters at a wholesale cost of $20 each. The store marked up the price 50 percent above the wholesale cost to use as their selling price. After every month that the sweater didn't sell, the store reduced the selling price by 20 percent. After how many monthly price reductions did the price dip below the wholesale cost? after 1 monthly price reduction after 2 monthly price reductions after 3 monthly price reductions after 4 monthly price reductions

after 2 monthly price reductions

Step-by-step explanation:

Given that :

Wholesale cost = $20 each

Markup = 50%

Selling price = $20 + (50% * 20) = $30

After each month selling price reduces by 20%;

Dip in price per month for which item didn't sell ;

Let m = Number of months

$30 - 0.2(30)m = $30 - 6m

After how many monthly price reductions did the price dip below the wholesale cost?

$30 - 6m < $20

-6m < $20 - $30

-6m < - $10

m > 10/6

m > 1.667

m = 2

After 2 monthly price reduction

for this case we must apply distributive property to the following expression:

the distributive property states that:

then, when applying the property we have to multiply the -2 for each term within the parenthesis: