Question

Mike sells calculators. His competitor sells a new calculator line for $14 each . Mike needs a 40% markup on selling price to make his desired profit and must meet price competition. What cost can Mike afford to bring these calculators into the store? what is the dollar markup?

Answer 1

cost to afford to bring these calculators is $8.4

markup on retail = 5.6

Explanation:

given data

selling price = $14

mark up on selling = 40% = 40/100 = 0.40

to find out

What cost can Mike afford to bring these calculators

solution

we calculate markup on retail that is mark up on selling of selling price

markup on retail = 0.40 × 14

markup on retail = 5.6

so

cost to afford to bring these calculators = 14 - 5.6

cost to afford to bring these calculators is $8.4