The amount of markup was found to be
M = $530.40,
but we need to find the percent markup,
%MCOST.
The markup amount will be compared to the price the wholesaler paid using the following equation. Note that the percent markup found will be a decimal and must then be converted to a percent.
%MCOST =
M
C
The wholesaler paid $680 for the guitar, so we have
C = $680.
Substitute the values for M and C into the equation.
%MCOST
=
M
C
=
530.40
=
This is the decimal value for the markup rate so it needs to be multiplied by 100% to find the percent markup. Thus, the percent markup is
%.
The cost of the watch to the wholesaler is $90 and we determined that as a decimal,
100% + %MCOST = 1.35.
Substitute the cost of the watch and the decimal form of
100% + %MCOST
into the equation to find the selling price of the watch (in $).
SP
=
C(100% + %MCOST)
=
90(135%)
=
90
=
$
The wholesale cost of the birdcage was given to be $55, so we have
C = $55.
We determined that as a decimal,
100% − %MSP = 0.53.
Substitute these values into the equation to find the original selling price (in $) of the birdcage, rounding the result to the nearest cent.
SP0
=
C
100% − %MSP
=
$55
=
$
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