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Assume you own a sporting goods business. Find the selling price for a tent costing $387, based on a 25% markup on selling price.

$387/75% = $516

can anyone tell me if this is correct?

The arithmetic is obviously correct, your calculator could have told you that.

My question: why are you making that calculation?

I am not sure what you mean? Is the answer correct?

No.

Could anyone please correct me?

Experiment with the numbers until you find a reasonable answer.

Hint: $500 is too much.

Is it 490.25 or 399.99?

Actually the answer is correct

profit = 516-387 = 129
markup based on selling price = 129/516 = .25
markup based on cost price = 129/387 = .33..

I just wanted Heyhi to explain to me why he performed that calculation.
He seems to be obsessed only with the answer, whereas I am more obsessed with
the analysis and procedure to obtain that answer.

Secondly, most of his problems dealt with markups based on selling price, which is unusual. Of course if a profit is made then the markup based on selling price is always lower than the markup based on cost price. Perhaps the business wants to give the impression of a lower markup?

Thanks, Reiny. I was wrong and barking up the wrong tree.

Yeah, I think that he was using a formula that's in my textbook, which if there's 25% off a selling price, take the selling price and divide by

100% - discount percentage. So, $387/75% = $516.

To find the selling price based on a 25% markup on the selling price, you can follow these steps:

Step 1: Calculate the selling price with the markup percentage:
Let's assume the cost price of the tent is $387.

Markup on selling price = 25%
Markup cost = $387 * (25/100) = $96.75

Step 2: Add the markup cost to the cost price:
Selling price = Cost price + Markup cost = $387 + $96.75 = $483.75

So, the selling price for a tent costing $387, based on a 25% markup on selling price, is $483.75.

Based on the calculation you provided ($387/75% = $516), it appears you mistakenly divided the cost price by the markup percentage instead of subtracting it. Therefore, it is not correct.