Question

The Cost of a bike to a store is $152. The Markup is 50%. What is the new price of the bike that the store will sell to a customer?

a) $152
b) $228
c) $76
d) $304

Answer 1

To find the new selling price of a bike with a markup of 50% on the cost price of $152, you add 50% of the cost price, which is $76, to the original cost, resulting in a final selling price of $228. Therefore, the correct Option is b).

Step-by-step explanation:

The question relates to the application of percentage markup in determining the selling price of an item. To calculate the new price of the bike that the store will sell, we need to consider the cost price and the percentage of markup. Here, the cost price is given as $152, and the markup is 50%. We apply the markup percentage to the cost price to find out how much to add on top of the cost price to arrive at the selling price. The markup amount is calculated by the following formula: Markup Amount = Cost Price × (Markup Percentage / 100).

In this case, the markup amount is $152 × (50 / 100) = $76. Now, we add this $76 to the original cost to get the selling price of the bike. The new selling price will thus be $152 + $76 = $228. Therefore, the correct option for the new price of the bike is option b) $228.