Question

At Ree Ski Center, the most people will pay for a neck warmer is $10. The manager of Ree Ski Center knows he needs a 30% markup based on cost. What is the most a manager can pay the suppliers for neck warmers and still keep the selling price at $10?

Answer 1

Let $x$ be the most the manager can pay the suppliers.

Then, we know from the information given in the question that the manager needs a 30% markup based on cost.

Therefore, the guiding equation will be:

$x+\frac{30}{100}x\leq 10$

because $10 is the most people will pay for a neck warmer.

Thus, the above equation will become:

$x+0.3x\leq 10$

$1.3x\leq 10$

$x\leq \frac{10}{1.3}=7.69$

$\therefore x\leq 7.69$

Thus, the most a manager can pay the suppliers for neck warmers and still keep the selling price at $10 is $7.69