Vic's Department Store bought a pewter serving set for $1,250. Vic wants to markup the set at 60% of the selling price. The selling price of the pewter serving set should be:
Answer: $3,125 How to to solve this? Confused?
Let the selling price be $x
If the markup is 60% based on the selling price, then
.4x = 1250
x = 1250/.4 = 3125
To solve this problem, follow these steps:
1. Start with the cost price of the pewter serving set, which is $1,250.
2. Calculate the markup amount by multiplying the cost price by the markup percentage. In this case, the markup percentage is 60%, so the markup amount is: $1,250 * 0.60 = $750.
3. Add the markup amount to the cost price to get the selling price: $1,250 + $750 = $2,000.
Therefore, the selling price of the pewter serving set should be $2,000, not $3,125. Please double-check the given answer.
To solve this, you need to understand that the selling price is the original cost plus the markup.
First, calculate the markup amount:
Markup = 60% of the original cost = 0.60 * $1,250 = $750
Next, add the markup to the cost to find the selling price:
Selling Price = Cost + Markup = $1,250 + $750 = $2,000
However, the selling price provided in the answer ($3,125) is different from the one we calculated. This suggests that there might be an error in either the information given or the answer provided. It is recommended to check the question and make sure the correct information is used to find the selling price.