Costco charges an annual membership fee of $55. As a member you can purchase products at lower prices (but typically in larger quantities than one buys at ordinary stores). Savings vary from product to product, but for this question, let us assume you can save 20 cents for every dollar you spend at one of these stores compared to shopping elsewhere.
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If you spend $100 on products at Costco in a year, do you come or ahead compared to buying products at the regular store?
How much do you save or lose?
How much do you have to spend at the store for to break even on the price of the membership?
What factors should you consider when deciding whether it would be financially beneficial to become a me ever at Costco?