Question

Randy’s Convenience Mart buys Lemon Fizz, a cold beverage, in 2-liter plastic bottles for $1.00. They use a 50 percent selling price markup, meaning that consumers pay Randy's ________ per bottle.

a) $0.50 b) $3.00 c) $1.25 d) $1.50 e) $2.00

Answer 1

(D) $1.50

Step-by-step explanation:

50% of $1 = $0.5

Then $1 + 0.50 = $ 1.50

Answer 2

d) $1.50

Step-by-step explanation:

To calculate what the consumers pay the Randy's mart we do the following,

Purchase price = $1, this is what the Randy's mart pays to buy the bottle they add 50% markup to retail.

The total price the consumer then pays = 1 * 1.5 = $1.5

This is the total marked up price that the consumers pays Randy's per bottle of Lemon Fizz.

Hope that helps.