Question

Tobias's music store bought a piano at the wholesale price of $550. Tobias marked up the price 35%. What was the amount of markup?

Answer 1

Answer:

A.  $58.50

B.  $80

C.  No. The markup was 33 1/3%

Step-by-step explanation:

You are expected to know the relevant relationship is ...

  cost + markup = selling price . . . . also called "store price" in this problem

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A. The markup is 30% × $45 = $13.50, so the store price is ...

 $45 + 13.50 = $58.50

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B. When the 30% markup is added to the 100% cost, the selling price is 130% of the cost, or 1.30 times the cost. Here you have ...

 $104 = 1.30 × cost

 $104/1.3 = cost = $80 . . . . . divide by the coefficient of cost

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C. The markup is $100 -75 = $25, so the markup percentage based on cost is ...

 $25/$75 × 100% = 33 1/3%

This is not 30%.

Step-by-step explanation: