Question

An item is purchased for a wholesale price of $48 and will be sold at a 55 percent markup. Which expression should be used to find the amount of the markup?

a) 48+0.55

b) 48×0.55

c) 48−(48×0.55)

d) 48×1.55

Answer 1

To find the amount of a 55 percent markup on a $48 item, the correct expression is b) 48×0.55, giving you the dollar amount of the markup. Expression d) 48×1.55 calculates the final selling price, including the original price and the markup.

Step-by-step explanation:

To determine the amount of markup on a wholesale item priced at $48 being sold at a 55 percent markup, you would use the formula to calculate the markup in dollars. Markup is typically calculated as a percentage of the wholesale price. In this case, a 55 percent markup means you're adding 55 percent of the item's wholesale cost to determine the additional amount added to the price.

Therefore, the formula to find the markup amount would be the wholesale price multiplied by the markup percentage as a decimal. This means that the correct expression to use is b) 48×0.55, which calculates the actual dollar amount of the markup.

To find the final price of the item, you will then need to add this markup to the original price of the item. If you want to calculate the final selling price directly, you would use the expression d) 48×1.55, which includes the original price plus the 55 percent markup combined in one operation.