Question

Bike store owner marks up the wholesale cost of all of the bikes they sell by 25%. 1. The owner purchased a bike for $120 (wholesale price). How much will he sell it for in his store?

Answer 1

$150

Explanation:

Given data

Mark up =25%

cost price= $120

Required

The selling price

Applying the following expression we can solve for the selling price

Mark up = selling -cost/cost *100

substitute

let the selling price be x

25= (x- 120)/120 *100

cross multiply

25*120= (x-120)*100

3000= 100x-12000

3000+12000=100x

15000= 100x

divide both sides by 100

x= 15000/100

x=150

Hence the selling price is $150