The Kitchen Kompany operates on a 145% markup rate based on the cost. The markup on the store's new line of cabinets is $300 per cabinet. Find the cost of one cabinet and its selling price.
1.45*cost=300
cost=300/1.45
selling price=cost+markup, or =2.45*cost
To find the cost of one cabinet, we'll use the formula:
Selling Price = Cost + Markup
Given that the markup rate is 145% and the markup on one cabinet is $300, we can write this as:
$300 = Cost + 145% * Cost
We can simplify the equation by converting the markup rate to a decimal:
$300 = Cost + 1.45 * Cost
$300 = 2.45 * Cost
Now we can solve for the cost of one cabinet:
Cost = $300 / 2.45
Cost ≈ $122.45
To find the selling price, we'll use the formula:
Selling Price = Cost + Markup
Selling Price = $122.45 + 145% * $122.45
Selling Price = $122.45 + 1.45 * $122.45
Selling Price = $122.45 + $177.47
Selling Price ≈ $299.92
Therefore, the cost of one cabinet is approximately $122.45 and the selling price is approximately $299.92.
To find the cost of one cabinet, we need to first calculate the percentage of the markup.
Markup percentage = 145%
Next, we need to calculate the selling price of one cabinet.
Selling price = cost + markup
Since we know the markup on one cabinet is $300, we can use this information to calculate its cost.
Markup = $300
Markup percentage = 145%
Cost = Markup / Markup percentage
Substituting the values, we can calculate the cost:
Cost = $300 / 145%
= $300 / 0.145
= $2068.97 (rounded to two decimal places)
Now that we have the cost, we can find the selling price:
Selling price = Cost + Markup
= $2068.97 + $300
= $2368.97 (rounded to two decimal places)
Therefore, the cost of one cabinet is $2068.97, and the selling price is $2368.97.