A retailer marks up their clothing 27% over wholesale prices. What would an item priced $23.75 cost at a retail store?
To find out the cost of an item at a retail store, given that the retailer marks up their clothing by 27% over wholesale prices, we need to calculate the markup amount and add it to the wholesale price.
Markup amount = 27% of wholesale price
Markup amount = 0.27 * wholesale price
Now, let's find the wholesale price:
Wholesale price + Markup amount = Retail price
Wholesale price + 0.27 * wholesale price = $23.75
Combining the terms with the wholesale price:
1.27 * wholesale price = $23.75
Dividing both sides by 1.27 to solve for the wholesale price:
wholesale price = $23.75 / 1.27
wholesale price ≈ $18.70
Therefore, the item would cost approximately $18.70 at a retail store.
To find the cost of an item at a retail store, given a markup percentage, we can use the following formula:
Retail price = Wholesale price + (Markup percentage * Wholesale price)
In this case, the wholesale price is the cost before the retailer marks it up. Let's solve the equation using the given information:
1. Convert the markup percentage to a decimal: 27% = 0.27
2. Calculate the wholesale price: Wholesale price = Retail price / (1 + Markup percentage)
Wholesale price = $23.75 / (1 + 0.27)
Wholesale price = $23.75 / 1.27
Wholesale price ≈ $18.70 (rounded to two decimal places)
3. Calculate the retail price: Retail price = Wholesale price + (Markup percentage * Wholesale price)
Retail price = $18.70 + (0.27 * $18.70)
Retail price = $18.70 + $5.04
Retail price ≈ $23.74 (rounded to two decimal places)
Therefore, the item priced at $23.75 at a retail store would cost approximately $23.74.
To find the retail price of an item with a 27% markup, you can follow these steps:
Step 1: Calculate the markup amount.
Multiply the wholesale price by the markup percentage (27% or 0.27):
Markup = Wholesale Price * Markup Percentage
Markup = $23.75 * 0.27
Markup = $6.4125 (rounded to the nearest cent)
Step 2: Add the markup to the wholesale price to get the retail price.
Retail Price = Wholesale Price + Markup
Retail Price = $23.75 + $6.4125
Retail Price = $30.1625 (rounded to the nearest cent)
Therefore, an item priced at $23.75 at the wholesale level would cost $30.16 (rounded to the nearest cent) at a retail store.