Question

Find the selling price of a $89.50 jacket with a 25% markup. Round to the nearest cent when necessary. $113.85 $111.22 $127.50 $111.88

Answer 1

$111.88 (option D)

Explanation:

Selling price = ?

Cost price of jacket = $89.50

Markup % = 25% = 0.25

We'll apply markup formula:

$markup\text{ \% = }\frac{selling\text{ price - cost price}}{\cos t\text{ price}}\text{ }\times\text{ 100}$$\begin{gathered} 0.25\text{ = }\frac{selling\text{ price - 89.50 }}{89.50} \\ \\ 0.25(89.50)\text{ = selling price - }89.50 \\ 22.375\text{ = selling price - 89.50} \\ 22.375\text{ + 89.50 = selling price} \end{gathered}$$\begin{gathered} \text{selling price = 111.875} \\ To\text{ the nearest cent,} \\ \text{Selling price = \ 111.88 (option D)} \end{gathered}$