Question

Selling price equation (e.g., CP = 20, Markup is 30%):

A. $20; Selling price is not affected by markup.
B. $26; Markup is added to the cost price.
C. $30; Selling price is equal to the cost price plus the markup.
D. $15; Markup is subtracted from the cost price.

Answer 1

The selling price equation indicates that the markup is added to the cost price, leading to a selling price of $26.

Step-by-step explanation:

The correct answer is B. $26; Markup is added to the cost price. When calculating the selling price using the markup method, the markup is added to the cost price. In this case, the cost price (CP) is $20 and the markup is 30%. So, the markup amount is $20 * 30% = $6. Adding the markup to the cost price gives $20 + $6 = $26, which is the selling price.