Question

The cost of making a blouse is $7. The manufacturer marks it up by 120% when selling to the retailer. What is the retailer's cost for each blouse?

Answer 1

The retailer's cost for each blouse is $15.40 after the manufacturer marks up the initial cost of $7 by 120%.

Step-by-step explanation:

To calculate the retailer's cost for each blouse after a 120% markup, we start with the initial cost to make the blouse, which is $7. A 120% markup means the blouse price is increased by 120% of the original cost. To find this increase, we multiply the original cost by 120% (or 1.20 in decimal form).

The calculation is as follows:
Markup amount = Original Cost × Markup Percentage
Markup amount = $7 × 1.20
Markup amount = $8.40

Now, we add the markup amount to the original cost to find the retailer's cost:
Retailer's cost = Original Cost + Markup amount
Retailer's cost = $7 + $8.40
Retailer's cost = $15.40

Therefore, the retailer's cost for each blouse is $15.40.