1. If the price of a new digital media player is $249.99 and the cost to the store that sells it is $150, what is the markup of this electronic item?
A. $100
B. $98.99
C. $99.99
D. $89.99
My answer C
2. What is the percentage markup of a digital media player that a store pays $150 for and sells at retail for $249.99?
A. 40%
B. 50%
C. 33%
D. 99%
I am not sure, because I got 67%
3. If a store buys a mountain bike at a cost of $75 and marks it up by 61 percent, what is the retail price of the bike?
A. $130.75
B. $120.75
C. $120.25
D. $125.25
My answer B
I like all your answers.
On #2, the markup based on cost is indeed 67%. The markup based on salling price is 40%, since the $100 markup is 40% of the $250 selling price. Could be they had a typo in the question or mixed up the answers.
Should I go with 40% then ?
1. To find the markup of the digital media player, you need to subtract the cost from the selling price. So, the markup is $249.99 - $150 = $99.99. Therefore, the correct answer is C. $99.99.
2. To find the percentage markup, you need to divide the markup by the cost and multiply by 100. So, the percentage markup is ($99.99 / $150) * 100 = 66.66%. Rounding to the nearest whole percentage, the correct answer is C. 33%.
3. To find the retail price of the mountain bike after a 61% markup, you need to add the markup percentage (61%) to 100% and multiply it by the cost. So, the retail price is ($75 * (1 + 61%)) = $120.75. Therefore, the correct answer is B. $120.75.