Question

You are buying and reselling items found at your local thrift shop. You found an antique pitcher for sale. If you need a 27% markup on cost and know most people will not pay more than $22 for it, what is the most you can pay for the pitcher? (Round your answer to the nearest cent.)

Answer 1

Answer:

The most you can pay for the pitcher is $17.32

Explanation:

A mark up is a percentage that is always applied on the cost to come up at a required gain over cost. The cost is always taken to be 100% when apply a mark up on cost.

If the mark up is of 27% and cost is 100% then a selling price of 22 will be equal to cost + markup.

Let cost be x.

Selling price = Cost + Mark up

22 = 100% * x + 27% * x

22 = 1x + 0.27x

22 = 1.27 x

22/1.27 = x

x = $17.3228 rounded off to $17.32