Question

An automobile DVD system sells to stores at a wholesale price of $497. A popular national chain store sells them for $879.99. What is the markup?

a) $382.99
b) $497
c) $382.01
d) $382

Answer 1

The markup on the automobile DVD system sold at a retail price of $879.99, when the wholesale price is $497, is $382.99 (option a).

Step-by-step explanation:

The student has asked to calculate the markup on an automobile DVD system. The wholesale price of the system is $497, and it sells to customers for $879.99. To find the markup, we subtract the wholesale price from the retail price:

Markup = Retail Price - Wholesale Price

Markup = $879.99 - $497

Markup = $382.99

Therefore, the correct answer is (a) $382.99.