Question

A pair of earrings has a 130% markup rate based on cost. The selling price is $77.77. What is the markup to the nearest cent? (Hint: Find cost first.)

Answer 1

$43.96

Explanation:

1. The formula to find selling price can be reversed to find cost;

Cost * ( 1 + Markup ) = Selling Price

2. Since we don't have cost but we have markup and selling price, we put those in to create our problem.

Cost * ( 1 + 130% ) = $77.77

3. Shift your percent to a decimal. Do this by moving the decimal two places to the left or by multiplying by 0.01.

Cost * ( 1 + 1.30 ) = $77.77

4. Simplify.

Cost *( 2.30 ) = $77.77

5. Remove the number in the parenthesis from both sides. Because the problem wants to multiply the cost, we will divide.

Cost / 2.30 = $77.77 / 2.30

6. Calculate the answer.

Cost = $33.81

Now that we have cost, we can find the markup. The formula for markup is:

Markup = Selling Price - Cost

1. Input your numbers into their proper spaces.

Markup = $77.77 - $33.81

2. Calculate your answer!

Markup = $43.96

Answer 2

The markup is $43.95 ( approx )

Explanation:

Let x be the cost price of the earring,

Given,

The earring is marked up 130 %,

Thus, the marked price of the earring = the cost price + 130 % of the cost price

= x + 130 % of x

`=x+(130x)/(100)`

`=x+1.30x`

`=2.30x`

Since, here, the marked price = Selling price = $ 77.77,

`\implies 2.30x= 77.77`

`\implies x = (77.77)/(2.30)=(7777)/(230)=33.8130435\approx 33.81`

So, the approximate cost price of the earring = $ 33.81,

And, the markup = 130 % of the cost price = 130% of 33.81

`=(130* 33.81)/(100)`

`=43.953\approx 43.95`