Answer:
$2.80
Step-by-step explanation:
We are asked to find the selling price of one gallon milk for which the store pays $2.00 and mark up is 40%.
We know that selling price of an item equals cost of item plus mark up.
The selling price of each gallon of milk would be $2.00 plus 40% of $2.00.
[tex]\text{Selling price of each gallon of milk}=\$2.00+\frac{40}{100}\times \$2.00[/tex]
[tex]\text{Selling price of each gallon of milk}=\$2.00+0.40\times \$2.00[/tex]
[tex]\text{Selling price of each gallon of milk}=\$2.00+\$0.80[/tex]
[tex]\text{Selling price of each gallon of milk}=\$2.80[/tex]
Therefore, the selling price of each gallon of milk is $2.80.
