Question

The cost of an office chair is $159 and the markup rate is 24% of the cost. What is A. the dollar markup and B. the selling price?

Answer 1

• A. $38.16
• B. $197.16

Explanation:

A. The dollar amout of the markup is found by multiplying the markup rate by the dollar cost. "24% of cost" means "24% × cost". Of course, you know that 24% = 24/100 = 0.24.

... markup = 0.24 × cost = 0.24 × $159 = $38.16

B. The markup is the amount added to the cost to get the selling price. It is the amount by which the cost is marked up.

... selling price = cost + markup = $159.00 +38.16 = $197.16