Question

The Kitchen Kompany operates on a 145% markup rate based on the cost. The markup on the store’s new line of cabinets is $300 per cabinet. Find the selling price of one cabinet. (Hint: Find the cost first.)

Answer 1

145%=1.45

The cost is
300÷(1.45)=206.9

The selling price is
The cost price+markup
206.9+300=506.9

Answer 2

The selling price of one cabinet is $ 506.90.

Explanation:

Let x be the cost price of one cabinet,

Given,

The markup percentage = 145%

Thus, the markup in one cabinet = 145 % of the cost price of one cabinet

= 145% of x

`=(145* x)/(100)`

`=1.45x`

According to the question,

1.45x = 300

`\implies x = (300)/(1.45)=206.89655\approx 206.90`

So, the cost price of one cabinet = $ 206.90 ( approx ),

Hence, the selling price of the cabinet = Cost price of the cabinet + Markup

= $ 206.90 + $ 300

= $ 506.90