Question

Brownsville, Texas, boasts being the southernmost international seaport and the largest city in the lower Rio Grande Valley. Ben Supple, an importer in Brownsville, has just received a shipment of Peruvian opals that he is pricing for sale. He paid $160 for the shipment. Assume he wants a 68% markup. Required: Calculate the selling price when the markup is based on the selling price.

Answer 1

The selling price for the shipment of Peruvian opals that Ben Supple received, considering a 68% markup based on the selling price, is calculated to be $500.

Step-by-step explanation:

The student is asking how to calculate the selling price of a shipment of Peruvian opals with a markup based on the selling price. A 68% markup on the selling price means that 68% of the selling price is the profit on top of the cost of the shipment, which is $160. To find the selling price, let's denote it as S. We'll set up the equation where the cost plus the markup equals the selling price:

160 + (0.68 × S) = S

Solving for S, we get:

160 = S – (0.68 × S)

160 = S × (1 – 0.68)

160 = S × 0.32

S = 160 / 0.32

S = $500

Thus, the selling price Ben Supple should set for the shipment of Peruvian opals is $500.