Final answer:
To find the retail price with a 40% markup on a wholesale price of $3.25, convert the markup to decimal (0.40), multiply by the wholesale price to get the increase ($1.30), and add it to the wholesale price for the correct answer of $4.55.
Step-by-step explanation:
To solve the problem, we need to calculate the retail price after applying the markup to the wholesale price. Firstly, convert the markup percentage to a decimal by dividing by 100. A 40% markup would be 0.40 in decimal form. Next, find the amount that the price increases by multiplying the wholesale price by the markup rate: $3.25 × 0.40 = $1.30. Finally, add the increase to the original wholesale price to find the retail price: $3.25 + $1.30 = $4.55.
Comparing the calculated retail price with the given options:
- Retail Price = $4.15
- Retail Price = $3.90
- Retail Price = $4.00
- Retail Price = $4.55
Therefore, option d) Retail Price = $4.55 is correct as it matches our calculation.