Question

A store pays $90 for a model railroad set. The store marks up the price 40%. what is the amount of the mark-up.

Answer 1

We can find it using the following formula:

`\begin{gathered} r=\frac{selling_{\text{ }}price-cost}{cost}*100 \\ where \\ r=40 \\ cost=90 \\ so\colon \end{gathered}`
`\begin{gathered} selling_{\text{ }}price=((40)/(100))\cdot90+90 \\ selling_{\text{ }}price=126 \end{gathered}`