Question

If a store uses a selling price-based markup of 40%, and an item costs the store $300, what selling price would the store set for the item?

A) $335 B) $400 C) $435 D) $500

Answer 1

Answer is D. Because it is if you look at the problem 40%/$300.00=0.6 same as 500

Answer 2

The correct answer for the given problem above would be option D. $500. To explain why it is $500, since the item costs the store $300 and it uses a selling price-based markup of 40%, so it would be $300 / 0.6 which is equal to $500.