In this exercise, we explore what happens when an item is marked up by a percentage, and then marked down using the same percentage.

Wegmans purchases an item for \(\$ 5\) per unit. The markup on the item is \(25 \%\).

a. Calculate the markup on the item, in dollars.

b. What is the price for which Wegmans sells the item? This is the price Wegmans paid, plus the markup.

c. Suppose Wegmans then offers a \(25 \%\) discount on the sale price of the item (found in part b). In dollars, how much is the discount?

d. Determine the price of the item after the discount (this is the sales price of the item minus the discount). Round to two decimal places.

e. Is the new price after the markup and discount equal to the price Wegmans paid for the item? Explain.