Question

The cost to a retailer of a responder backpack used in emergency situations is $84.96. The retailer uses a markup of 40% based on cost. Find the selling price

Answer 1

The first thing we have to do is identify the heats of the problem:

$\begin{gathered} P_S\to\text{selling price} \\ C\to\cos t \\ p\to\text{percentage of profit} \end{gathered}$$\begin{gathered} C=84.96 \\ p=\frac{40}{100}=0.4 \end{gathered}$

We calculate the profit price first by multiplying the cost value by the percentage

$\begin{gathered} profit=C\cdot p \\ profit=84.96\cdot(0.4) \\ profit=33.984 \end{gathered}$

Now we calculate the sale price by adding the cost and the desired profit

$\begin{gathered} P_s=C+profit \\ P_s=84.96+33.984 \\ P_s=118.944 \end{gathered}$

The selling price will be $118.944