Question

A store manager instructs his employees to mark up all items by 30%. A store clerk puts a price tag of $30 on an item that the store bought for $27. As an employee, you notice that this selling price is incorrect. What should you do?

Answer 1

The correct selling price for an item marked up by 30% from a cost of $27 is $35.10, hence the price tag of $30 is incorrect and should be changed.

Step-by-step explanation:

As an employee who notices that the price tag of $30 on an item is incorrect based on the store manager's instruction to markup items by 30%, you should calculate the correct selling price and bring it to the attention of the store clerk. To find the correct selling price, you first determine the markup amount by multiplying the store's cost for the item ($27) by 30%, which is $27 * 0.30 = $8.10. Adding the markup to the store's cost gives the correct selling price, which is $27 + $8.10 = $35.10. Therefore, the correct action would be to correct the price tag to reflect a selling price of $35.10.