Lets say Costco price club claims that they sell a 6 pack of Coors Beer at the wholesale price plus an additional 5% off. But with Costco, you also have to pay a yearly membership fee of $60 just to have the privilege of shopping there. The wholesale price of Coors at Costco is $3.50 a six pack. The 5% discount is taken at the register when you pay.
My local grocery is currently running a special on Coors Beer 6 packs where the price is discounted by 10% of the regular price. The regular price is $5.00 a six pack.
Here is the question (After all that you say!): What is the minimum number of 6 packs of Coors per month would I have to buy at Costco to make the membership worthwhile as compared to just getting the 10% at my neighborhood grocery store?
The solution goes into a great amount of detail regarding the question being asked. Step by step explanation is provided for each part of the question which makes it very easy to follow along for anyone with just a basic understanding of the concepts. Overall, an excellent response to the question being asked.