Question

A company uses a variable percentage markup of 35% .if the total cost of a product is $15,what is its selling price

Answer 1

The selling price of a product with a 35% markup on a cost of $15 is calculated by adding the markup amount of $5.25 to the cost, resulting in a selling price of $20.25.

Step-by-step explanation:

To calculate the selling price of a product using a variable percentage markup, you first need to determine the amount of markup by converting the percentage to a decimal and multiplying by the cost of the product. In this case, with a 35% markup on a product that costs $15, the calculation is as follows:

$15 × 0.35 = $5.25

This $5.25 represents the amount of markup on the product. To find the selling price, you simply add the markup to the cost:

$15 + $5.25 = $20.25

Therefore, the selling price of the product would be $20.25.

Answer 2

The percentage mark up refers to the amount of money added to the cost price of goods to cover for the overheads and profit. In this case, the mark up price is 35% of the cost price, therefore: (35%=0.35)

Mark up = 0.35 * $15

Mark up = $5.25

However this is not yet the selling price. The selling price is the mark up value plus the original cost price, therefore:

Selling price = $5.25 + $15

Selling price = $20.25

Therefore the product is sold at $20.25.

Alternate: Another way to solve this is to directly multiply the cost price by 135%, that is: (135% = 1.35)

Selling price = 1.35 ($15)

Selling price = $20.25