Question

60 POINTS!! The video game Shermainia costs $20 to make, it is then marked up 275%. What is the selling price for the game, including 8.75% sales tax.

Students answer- 20 times 2.75=55 next 55 times 1.0875 = $59.81

Explain why the student is wrong and than explain how to get the right answer.

Answer 1

The student did not add the mark up to the original price.

Explanation:

Cost to make is $20

Then we mark it up 275%

Change it to a decimal 2.75

Markup = old price * 275%

Markup = 20*2.75

Markup =55

New price = old price + markup

New price = 20+55

New price = 75

tax = New price *8.75%

Change to a decimal

8.75% = .0875

tax = 75*.0875

tax = 6.5625

Rounding to the nearest cent

tax =6.56

Final cost =new price+tax

Final cost = 75+6.56

Final cost = 81.56

The student did not add the mark up to the original price.