Question

Apply the markup for each item, then find the retail price.

Original Price: $1.25. Markup %: 80%
A) Retail Price: $0.80
B) Retail Price: $1.45
C) Retail Price: $2.25
D) Retail Price: $2.25
E) Retail Price: $1.80

Answer 1

To find the retail price after an 80% markup on an original price of $1.25, convert the markup to decimal, multiply it with the original price, and add the result to the original price. The correct retail price is $2.25.

Step-by-step explanation:

To calculate the retail price with a markup, follow these steps:

1. Convert the markup percentage to a decimal by dividing by 100. In this case, the markup is 80%, which as a decimal is 0.80.
2. Multiply the original price by the markup percentage in decimal form. For an original price of $1.25, the calculation is $1.25 × 0.80 = $1.00.
3. Add the markup amount to the original price to find the retail price. So, $1.25 + $1.00 = $2.25.

The correct answer is Retail Price: $2.25, which corresponds to option C.