Question

A bookstore is considering stocking a limited edition of Alice in Wonderland dolls at a cost of $125 each. The manager calculated the retail price with an initial markup percentage of 48 percent and plans to ticket the product with a ".00" ending. What would be the initial retail price on the doll?

Answer 1

Answer: $185.00

Explanation:

DEFINITION OF MARKUP PERCENTAGE: This is the percentage profit of a unit bought or sold, which is equivalent to the retail price minus the cost price all divided by the cost price expressed as a percentage. Mathematically,

Markup percentage = (Retail price - Cost price)/Cost price *100

Markup%= (RP-CP)/CP*100, where Markup%=48%; RP=X; CP=$125

48= (X-125)/125*100

48/100= (X-125)/125

0.48*125= X-125

60= X-125

X=60+125 =185

Therefore, the Retail price = X= $185

Because the manager is planning to ticket the product with a ".00" ending the Retail price becomes $185.00.