a soft ware buyer looking for a product to retail for $230.00 he wants to apply a mark up of 38% based on selling price allowing for this what is the maximum amount the buyer can pay for the software
would it be $87.40
$142.60. You didn't read the question carefully is all it looks like. You figured out how much the markup would be rather than the price he paid for it. Subtract 230-87.40 and you get $142.60
So he will buy it for $142.60, mark it up 87.40, and sell it for $230.
Matt
This dose not look right....
The buyer is looking to purchase software for $166.66 to sale at a 38% markup price of $230. (or as close as you can get to it) This is a messed up question.
38/1oo*230=87.40. 230.00-87.40=142.60.the answer is 142.60
To determine the maximum amount the buyer can pay for the software, we need to work backwards from the desired selling price and markup percentage.
Step 1: Calculate the cost price of the software (i.e., the amount the buyer can pay):
Let's assume the cost price is represented by "x".
Markup percentage based on selling price means that the markup is calculated as a percentage of the selling price.
Given that the desired selling price is $230 and the markup percentage is 38%, we can set up the following equation:
Selling price = Cost price + Markup
$230 = x + (38% of selling price)
Step 2: Calculate the markup amount:
To find the markup amount, we multiply the selling price by the markup percentage:
Markup amount = 38% of $230
Markup amount = (38/100) * $230 = $87.40
Step 3: Calculate the cost price:
We can rearrange the equation from Step 1 to solve for the cost price:
$230 = x + $87.40
x = $230 - $87.40
x = $142.60
Therefore, the maximum amount the buyer can pay for the software (cost price) is $142.60, not $87.40.