A furniture store sells recliners at a 70% mark-up (based on price). If the recliner costs the store $240, what price will they charge?
1.70 x $240 = ____
That would be the answer for the markup on cost, but the 70% is a markup on selling price not cost.
Formula:
%Markup on cost=%markup on selling price/100% - % markup on selling price
x = 70%/100%-70%
x = 70%/30%
x = 233.333%
cost $240 x (233.33%) = $800
???????????????
Does this seem right?
To determine the price the store will charge for the recliner, you need to calculate the 70% mark-up from the cost of $240.
1. First, calculate the mark-up amount by multiplying the cost by the mark-up percentage:
Mark-up amount = 70% of $240 = 0.70 * $240 = $168.
2. Next, add the mark-up amount to the cost of the recliner to find the selling price:
Selling price = Cost + Mark-up amount = $240 + $168 = $408.
Therefore, the furniture store will charge $408 for the recliner.