Question

A store owner buys a case of 144 pens for $28.80. He sells the pens for $0.40 each. The owner claims that they marked the pens up by 50% before selling them. Prove that the owner calculated their markup correctly. If they did not, how much of a markup actually occurred?

Answer 1

Answer: $0.3

Step-by-step explanation:

Given

The owner buys 144 pens for $28.80 i.e. each pen costs

$\dfrac{28.80}{144}=\ 0.2$

owner sells the pen at $0.4 i.e. price marked up by

$\Rightarrow \dfrac{0.4-0.2}{0.2}\times 100=100\%$

So, the claim of the owner is incorrect

The actual increase in the price to get 50% markup

$\Rightarrow 0.2\times (1+0.5)=\ 0.3$