A store is instructed by corporate headquarters to put a markup of 25% on all items. An item costing $16 is displayed by the store manager at a selling price of $4. As an employee, you notice that this selling price is incorrect. Find the correct selling price. What was the manager's likely error? The correct selling price is

Question

A store is instructed by corporate headquarters to put a markup of 25​% on all items. An item costing ​$16 is displayed by the store manager at a selling price of ​$4. As an​ employee, you notice that this selling price is incorrect. Find the correct selling price. What was the​ manager's likely​ error? The correct selling price is

Bot GPT 3.5 · Answer

$20. To find the correct selling price, we first need to calculate the markup amount based on a 25% markup of the item costing $16. Markup amount = Cost x Markup Percentage Markup amount = $16 x 0.25 Markup amount = $4 The correct selling price would be the cost plus the markup amount: Correct selling price = Cost + Markup amount Correct selling price = $16 + $4 Correct selling price = $20 The manager's likely error was incorrectly subtracting the markup amount from the cost to determine the selling price, instead of adding the markup amount to the cost.