In a retail shop using a 75% cost-plus pricing strategy, what will be the promotional price of a new model of golf shoe originally costing $80 after a 25% discount?

To determine the promotional price of the golf shoe using a cost-plus pricing strategy, first, you need to calculate the selling price before applying the discount.

The original cost of the golf shoe is $80. With a cost-plus pricing strategy at a 75% markup, you would add 75% of the cost to the original price.

First, calculate the markup:

75% of $80 is $60 (0.75 * 80 = 60).

Now, add this markup to the original cost:

$80 (original cost) + $60 (markup) = $140.

This would be the price before any promotions or discounts are applied.

Next, apply a 25% discount on this selling price. A 25% discount on $140 amounts to $35 (0.25 * 140 = 35).

Thus, subtract the discount from the initial selling price:

$140 - $35 = $105.

Therefore, the promotional price after the discount would be $105. This confirms that the cost-plus pricing strategy leads to a higher price point before discounts, and calculating the discount correctly results in the correct promotional price that reflects the intended sales strategy.