Question

The owner of a music store received a shipment of stereos at a cost of $160.00 each. What will the selling price be if he applies a 45% markup? $300 $205 $232 $88

Answer 1

The owner of a music store received a shipment of stereos at a cost of $160.00 each.

What will the selling price be if he applies a 45% markup?

Recall that the selling price is given by

`S=C+M`

Where C is the cost and M is the markup.

Let us first find the markup

The markup is found by multiplying the markup percentage with the cost

`\begin{gathered} M=0.45*\$160 \\ M=\$72 \end{gathered}`

Now we can find the selling price

`\begin{gathered} S=C+M \\ S=\$160+\$72 \\ S=\$232 \end{gathered}`

So option C is correct.

Therefore, the selling price is $232