Question

"When the manager of Fantastic Furniture buys a sofa from a manufacturer, she uses a markup of 145% of her cost to set the selling price of the sofa. What will be the selling price if the manager of Fantastic Furniture buys a sofa for $400?

a) $580
b) $600
c) $480
d) $525"

Answer 1

The selling price of the sofa will be $980 when the manager of Fantastic Furniture applies a 145% markup to the cost price of $400.

Step-by-step explanation:

When calculating the selling price of an item with a markup, you have to find a certain percentage above the cost price. The manager of Fantastic Furniture uses a markup of 145% on the cost to set the selling price of a sofa. If the cost price of the sofa is $400, the markup in dollars would be 145% of $400, which is $580. Adding this markup to the original cost gives us the selling price.

To find the markup, you multiply the cost price by the markup percentage (in decimal form): $400 × 1.45 = $580. Next, add the markup to the cost price to get the selling price: $400 + $580 = $980.

Therefore, the manager of Fantastic Furniture will sell the sofa for $980.

The selling price of the sofa will be $980 when the manager of Fantastic Furniture applies a 145% markup to the cost price of $400.