Question

Cecil Green sells golf hats. He knows that most people will not pay more than $20 for a golf hat. Cecil needs a 40% markup on cost. What should Cecil pay for his golf hats? (Round your answer to the nearest cent.) Cecil pays $

Answer 1

If we call the cost C then Cecil has to mark the product up 40% of C. That means he needs to charge the whole cost (100%) + 40% of the cost.

That is 140% of C. This amount needs to be $20.

In an equation we have 140% of C which can be written $( \frac{140}{100} )C$ set equal to $20. We solve for C which is the cost or what Cecil should pay for a hat.

$(\frac{140}{100} )C=20$
$(\frac{7C}{5} )= \frac{20}{1}$

This is a proportion so we cross-multiply to solve:
$100=7c$
$\frac{100}{7} =C$
C=$14.29