Question

The local grocery store will purchase food items and mark them up 85%. If the wholesale price of an item was $5.75, what price will the customer pay for the item?

Answer 1

Answer:

$10.64

Explanation:

The mark up is simply the difference between the cost of the good for the seller, and the final price that the customer pays.

In this case, the local grocer store purchased the food item for $5.75, and the markup is 85%, so we multiply 5.75 x 85% = 4.89, and this result is the value that will be increased to reach the final consumer price:

Final consumer price = 5.75 + 4.89 = $10.64