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?
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?
This is a simple question, why are you making it so complicated?
Cost to store = 240
markup = 70%
so markup = .7(240) = 168
so selling price = 408
or in one step ....
selling price = 1.7(240) = 408
(you have a 133.3% markup)
It says the mark up is based on price not cost so i believe that Reiny's answer is wrong because her answer is based on cost not price.
Cost + Mark-up = Price
cost=$240, mark-up=.7S, price=S
$240+.7S=S
$240=.3S
S=$800
$800
The formula you provided for calculating the selling price based on a markup percentage is incorrect. Let me explain the correct calculation:
To calculate the selling price with a markup percentage, you need to add the markup amount to the cost price. The markup is calculated as a percentage of the cost price. In this case, the markup is 70% of the cost price.
Therefore, to find the markup amount, you multiply the cost price by the markup percentage (70%).
Markup amount = Markup percentage * Cost price
= 70% * $240
= 0.70 * $240
= $168
Next, you add the markup amount to the cost price to get the selling price:
Selling price = Cost price + Markup amount
= $240 + $168
= $408
So the price the furniture store will charge for the recliner is $408.