Question

Need help filling in the blanks: selling price using markup.

Answer 1

Refer to the explanation.

Explanation:

Let's take each one at a time.

1.

To solve for the complement, we simply subtract our markup rate by 100%.

100% - 30% = 70%

Now to solve for the selling price, we use the formula

`SellingPrice=(Cost)/(ComplementOfMarkupRate)`

`SellingPrice=(86.74)/(0.70)`

Selling Price = $123.91

2.

We do the same process with the first number.

100% - 40% = 60%

`SellingPrice=(Cost)/(ComplementOfMarkupRate)`

`SellingPrice=(220.00)/(0.60)`

SellingPrice = $366.67

3.

The same as the first two.

100% - 20% = 80%

`SellingPrice=(Cost)/(ComplementOfMarkupRate)`

`SellingPrice=(89.50)/(0.80)`

SellingPrice = $111.88

4.

Now to solve for the markup rate, we use the formula:

`MarkupRate=(Markup)/(SelingPrice)`

In this case we first need to find the markup. The markup is the difference between the selling price and the cost.

Selling Price = $235.28

Cost = $199.99

Markup = $235.28 - $199.99

Markup = $35.29

Now the we know our markup, we can then solve for the markup rate using the formula.

`MarkupRate=(Markup)/(SelingPrice)`

`MarkupRate=(35.29)/(235.28)`

MarkupRate = 0.1499 x 100 = 14.99% or 15%

5.

Now for the last one, we need to find for the cost. Let's use the selling price formula to find for the cost.

`SellingPrice=(Cost)/(ComplementOfMarkupRate)`

Selling Price = $30.77

Complement = 65% or 0.65

This will then give us.

`30.77=(Cost)/(0.65)`

We multiple both sides of the equation by 0.65 to leave our cost alone.

30.77 x 0.65 = Cost

Cost = $20