Breck Hardware purchased from Black and Decker 10 Dust Busters for $24.95 each. What
should Breck charge its customers for each Dust Buster if it has a 39.5% markup on cost?
24.95 * 1.395 = ?
34.81 ?
Yes. You're right.
To determine the price that Breck should charge its customers for each Dust Buster with a 39.5% markup on cost, we can follow these steps:
1. Calculate the cost of each Dust Buster by multiplying the purchase price ($24.95) by the quantity purchased (10). The total cost is $24.95 * 10 = $249.50.
2. Determine the markup amount by multiplying the cost by the markup percentage (39.5%). Markup amount = $249.50 * 0.395 = $98.5275 (rounded to $98.53).
3. Add the markup amount to the cost to calculate the selling price per Dust Buster. Selling price = cost + markup = $249.50 + $98.53 = $348.03.
Therefore, Breck should charge its customers $348.03 for each Dust Buster to achieve a 39.5% markup on cost.