SOLUTION: If a store uses a selling price-based markup of 40%, and an item costs the store $300, what selling price would the store set for the item?
A. $335
B. $400
C. $435
D. $500
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A. $335
B. $400
C. $435
D. $500
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Question 999667: If a store uses a selling price-based markup of 40%, and an item costs the store $300, what selling price would the store set for the item?
A. $335
B. $400
C. $435
D. $500
I am extremely lost on this problem. My calculations keep giving me $300 and that is not an option for an answer so obviously I am doing something wrong and I tried contacting my instructor for help but this is what they sent me and I am still lost, Please help!
Please note that question 11 is asking you to calculate a selling-price based markup, not a markup based on cost. There is a formula provided in your book for a selling-price based markup. The key is to remember that the dollar markup is not the percentage markup times the cost. It is the percentage mark up times the selling price. Thus, you do not take 40% of $300 to find the dollar mark up. The dollar markup is 40% times the selling price, which you do not know yet. You have to use 0.4 x selling price in place of dollar markup in the equation. Thus, you will have an equation: selling price - 0.4 x selling price = cost. Refer to the example in the book for the procedure for solving this type of equation. Answer by KMST(5328) (Show Source):
You can put this solution on YOUR website! =.. selling price = cost = markup = 40% of selling price
The problem says that
That is the equation to solve. --->--->--->--->--->
