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A product has a cost of 1920 and a mark-up of 20% of the selling price. What is the selling price?

A) $1920
B) $2400
C) $2304
D) $2112

1 Answer

1 vote

Final answer:

The selling price of a product with a cost of $1920 and a mark-up of 20% of the selling price is calculated by solving the equation S = cost + (mark-up × S) resulting in a selling price of $2400.

Step-by-step explanation:

To calculate the selling price of a product where the mark-up is 20% of the selling price we can set up the equation with the cost as the part of the price without the mark-up. if the product has a cost of $1920 and the mark-up is 20% of the selling price then the selling price (S) can be expressed as S = cost + (mark-up × S).

We substitute the given values into the equation: S = 1920 + (0.20 × S). To find S, we need to solve this equation for S, which is a common algebraic process in mathematics involving isolating the variable S on one side of the equation.

0.20 × S = S - 1920

1S - 0.20S = 1920

0.80S = 1920

S = 1920 / 0.80

S = 2400

Therefore, the correct selling price is $2400, which corresponds to option B.

User Jeff LaFay
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