Final answer:
To determine the markup amount for an item that the store initially pays $868 for and then marks up by 17%, calculate 17% of $868, which results in a markup of $147.56.
Step-by-step explanation:
The question asked how to calculate the amount of the markup if a store pays $868 for a carousel horse and marks up the price by 17%.
To find the markup amount, we need to calculate 17% of the store's cost and then add that to the original cost to get the selling price.
To calculate the markup: Convert the percent to a decimal by dividing by 100, which gives us 0.17.
Then, multiply the decimal by the original cost of the carousel horse:
Markup = 0.17 × $868
Markup = $147.56
The amount of the markup on the carousel horse is $147.56.