Let's solve this problem step-by-step.
Explanation:
In order to find the price at which the store owner sells the cell phone, we must first establish by how much the price is changing.
As the problem states that the price of the cell phones is marked up by 25 percent, we must simply find 25 percent of the original price which the cellphones were purchased at and then add the amount to the original price.
Essentially this means we will do the following:
Let selling price = x
Let original price purchased at = $40
Let mark up = 25% = 0.25
x = Original price purchased at × ( 1 + mark up )
x = 40 × ( 1 + 0.25 )
x = 40 × 1.25
x = $50
FINAL ANSWER:
Therefore, the price which the store owner sells the cell phones at is $50.
Hope this helps! :)
Have a lovely day! <3