Question

MicroAge sells cellphones at a selling price to include a 65% markup on cost. The cellphones cost MicroAge $290. The selling price is:

a) $188.50
b) $478.50
c) $754.50
d) $754.50

Answer 1

The selling price of the cellphones, which include a 65% markup on the cost of $290, is calculated as $290 plus 65% of $290, which results in a selling price of $478.50.

Step-by-step explanation:

The student's question asks how to calculate the selling price of cellphones that include a 65% markup on the cost, given that the cellphones cost MicroAge $290. The selling price can be calculated using the formula: Selling Price = Cost + (Cost × Markup Percentage). Here, the markup percentage is 65%, so we convert that to a decimal (0.65) when using the formula.

To calculate the selling price: Selling Price = $290 + ($290 × 0.65) = $290 + $188.50 = $478.50.

Therefore, the correct selling price of the cellphones including a 65% markup on cost is $478.50.