15. You are the buyer for The Shoe Outlet. You are looking for a line of men’s shoes to retail for $79.95. If your objective is a 55% markup based on selling price, what is the most that you can pay for the shoes and still get the desired markup
There has been quite a few problems solved on markup based on selling price. This should give you (or others) another example to work on your other problems.
retail price = selling price.
If there is a 55% markup based on selling price, then the cost price is 100-55=45%
So the highest possible cost is
$79.95*0.45=$35.98.
To determine the maximum price you can pay for the shoes and still achieve the desired markup, you need to work backwards from the desired selling price.
Step 1: Calculate the desired selling price
The desired selling price can be found by adding the desired markup to the cost price.
Cost Price + Markup = Selling Price
Step 2: Calculate the cost price
To find the cost price, you need to use the formula:
Cost Price = Selling Price / (1 + Markup Percentage)
Step 3: Calculate the most you can pay for the shoes
By substituting the given values into the formulas, you can find the most you can pay for the shoes.
Let's do the calculations:
Step 1:
The desired selling price is $79.95.
Step 2:
Markup Percentage = 55%
Cost Price = $79.95 / (1 + 0.55)
Cost Price = $79.95 / 1.55
Cost Price ≈ $51.59
Step 3:
To find the most you can pay for the shoes, subtract the desired markup from the cost price.
Most You Can Pay = Cost Price - Markup
Most You Can Pay = $51.59 - ($51.59 * 0.55)
Most You Can Pay = $51.59 - $28.37
Most You Can Pay ≈ $23.22
Therefore, the most that you can pay for the shoes and still get a 55% markup based on the selling price is approximately $23.22.