Question

Beach Bicycles sells two-seater bicycles. Its markup rate is 68%. Which equation represents the new price for a bicycle, y, given an original price, x?

Answer 1

Answer:

y = 1.68x

Step-by-step explanation:

The markup rate of a product or service refers to how higher the selling price is than the total production cost. In this case, this company doesn't produce the bikes, instead it purchases them from a wholesaler, distributor or even the factory, and then resells them in order to make a profit.

E.g. Beach Bicycles purchases two-seater bikes at $200 each, and then it will resell them to their customers at 1.68 x $200 = $336. The total markup in this example is $136, which represents $136/$200 = 68% of the purchase price.