Question

a computer software retailer uses a markup rate of 40%. if the retailer pays $25 each for computer games sold in its stores, how much do the games sell for? 2) a golf pro shop pays its wholesaler $40 for a certain club, and then sells that club to golfers for $75. what is the retail markup rate? 3) a shoe store uses a 40% markup on cost. find the cost of a pair of shoes that sells for $63.

Answer 1

1) The games sell for $35. 2) The retail markup rate is 87.5%. 3) The cost of the shoes is $37.80.

Step-by-step explanation:

1) To find the selling price of the computer games, we need to apply the markup rate of 40% to the cost price. The cost price is given as $25 per game, so the markup is $25 * 40% = $10. Therefore, the selling price of the games is $25 + $10 = $35.

2) To find the retail markup rate, we need to calculate the markup amount first. The markup amount is the selling price minus the cost price, which is $75 - $40 = $35. Then, we divide the markup amount by the cost price and multiply by 100 to find the retail markup rate. So, the retail markup rate is ($35 / $40) * 100 = 87.5%.

3) To find the cost of a pair of shoes that sells for $63, we need to apply the markup rate of 40% to the cost. Let's assume the cost price as 'C'. The selling price is given as $63, so the markup is $63 - C. We have the equation C + $63 - C = $63 * 0.4. Simplifying the equation, we get C = $63 * 0.6 = $37.80. Therefore, the cost of a pair of shoes is $37.80.