Question

The manager at Gabriel's Furniture Store is trying to figure out how much to charge for a bookshelf that just arrived. The bookshelf was bought at a wholesale price of $147.00 and Gabriel's Furniture Store marks up all furniture by 60%. At what price should the manager sell the bookshelf?

Answer 1

First: markup rate × wholesale price = amount of markup

Second: Well the markup rate is a percentage, you have to convert it into a decimal. Percent means "out of one hundred," so 80% is equivalent to 80/100 which is also equal to 80÷100.

Third: 80÷100=0.80

0.80 × $93.00 = $74.40

Fourth: The markup rate is a percentage of the wholesale price that is added to get the retail price, you can find the retail price with the following equation: amount of markup + wholesale price = retail price

$74.40 + $93.00 = $167.40

The retail price of the chair should be $167.40.