Question

Find the markup and the selling price of the following item. Round answers to the nearest cent. A chemistry set costing $27.50, marked up 32% on cost.

Answer 1

Let x be marked up price. We have been given that a chemistry set costing $27.50, marked up 32% on cost.

$x=27.50\times\frac{32}{100}$

$x=27.50\times.32$

$x=8.8$

Therefore, mark up price is $8.80.  

Since we know that selling price of any item equals the sum of cost and mark-up price of the item.

Let us find selling price of our chemistry set.  

$\text{Selling price of chemistry set}=27.50+8.8$

$\text{Selling price of chemistry set}=36.30$      

Therefore, the selling price of the chemistry set is $ 36.30.

Answer 2

The relationship between markup and cost is given in the problem statement.

markup = 0.32 × cost = 0.32 × $27.50 = $8.80

Selling price is the sum of cost and markup.

selling price = cost + markup = $27.50 + 8.80 = $36.30