Question

Your typical markup for merchandise is 40%. Your cost on an item is $8.00. Calculate the selling price.

Answer 1

To calculate the selling price of the item, you must apply the following formula:

Selling price=(Markup/Product costx100%)+Product cost

You have that:

Markup=40%
Product cost=$8.00

Given these values, you only have to substitute them into the formula of Selling price:

Selling price=(Markup/Product costx100%)+Product cost
Selling price=(40%/$8.00x100%)+$8.00
Selling price=$3.20+$8.00
Selling price=$11.20