The Soft Step Floor Company purchases carpeting for $5.12 per square yard and marks it up 55% based on the selling price. What is the selling price per square yard? (Round to the nearest cent.)
Use similar process as previous post.
To find the selling price per square yard, we need to calculate the markup price first.
The markup percentage is 55%. This means the selling price is 55% more than the cost price.
Let's calculate the markup price:
Markup price = cost price + (markup percentage * cost price)
Markup price = $5.12 + (55% * $5.12)
Markup price = $5.12 + (0.55 * $5.12)
Markup price = $5.12 + $2.816
Markup price = $7.936
Now, to find the selling price per square yard, we divide the markup price by 1 plus the markup percentage (in decimal form):
Selling price per square yard = Markup price / (1 + markup percentage)
Selling price per square yard = $7.936 / (1 + 55%)
To convert the markup percentage to a decimal, divide it by 100:
Selling price per square yard = $7.936 / (1 + 0.55)
Selling price per square yard = $7.936 / 1.55
Selling price per square yard ≈ $5.1225
Rounding to the nearest cent, the selling price per square yard is $5.12.