Question

A store buys guitars from a manufacturer at a

wholesale price of $38. The store's markup is 85%.
What is the retail price?

Answer 1

The retail price of the guitar after an 85% markup on the wholesale price will be $70.30.

Step-by-step explanation:

The subject of this question is Mathematics, specifically dealing with calculating a retail price after a markup. The grade level is High School, as the concept of percentage markup is often taught at this level. To answer the question posed:

A store buys guitars at a wholesale price of $38, and marks up the price by 85%. To find the retail price, we need to calculate the markup amount and add it to the wholesale price. The markup amount is found by multiplying the wholesale price by the markup percentage (converted to a decimal).

Here's the calculation:

1. Convert the markup percentage to a decimal: 85% = 0.85.
2. Multiply the wholesale price by the decimal markup: $38 x 0.85 = $32.30. This is the markup amount.
3. Add the markup amount to the original wholesale price to find the retail price: $38 + $32.30 = $70.30.

Therefore, the retail price of the guitar after an 85% markup on the wholesale price will be $70.30.