Question

The cost to a landscape architect for a 25-gallon tree is $74. Find the selling price of the tree if the markup rate used by the architect is 25%. (Round your answer to the nearest cent.)

A) $92.50
B) $85.25
C) $92.75
D) $98.75

Answer 1

To find the selling price of the tree with a 25% markup, multiply the cost price ($74) by 25% to calculate the markup amount ($18.50), then add it to the original cost to get $92.50.

Step-by-step explanation:

The student has asked how to find the selling price of a tree after a 25% markup is added to the cost price. First, you need to calculate the amount of markup by taking the percentage of the cost price. Then, add the markup to the original cost to find the selling price.

The cost of the 25-gallon tree is $74. To find the markup, multiply the cost by the markup rate: $74 × 0.25 = $18.50. Finally, add the markup to the original cost to get the selling price: $74 + $18.50 = $92.50.

Therefore, the correct selling price, rounded to the nearest cent, is $92.50, which is option A.