Final answer:
To find the amount of markup, we first need to determine the cost of the textbook. The cost can be calculated using the given selling price and the rate of markup. Once we have the cost, we can calculate the markup amount using the rate of markup.
Step-by-step explanation:
To find the amount of markup, we first need to determine the cost of the textbook. Since the distributor has a rate of markup of 25.00% on cost, we can set up the equation:
Cost + Markup = Selling Price
Let's assume the cost of the textbook is C. The markup can be calculated as 25% of C, which is 0.25C. The selling price is given as $120.00. So, we have the equation:
C + 0.25C = $120.00
1.25C = $120.00
C = $120.00 / 1.25
C = $96.00
Now that we know the cost is $96.00, we can calculate the markup:
Markup = 0.25C
Markup = 0.25 * $96.00
Markup = $24.00