Question

A jewelry store purchases a diamond ring from a wholesaler for $375.50. The store plans to mark up the ring by 175%. What will be the

selling price of the diamond ring? Round to the nearest cent.

Answer 1

$1,033.13.

Explanation:

To find the selling price of the diamond ring, we need to add the markup amount to the original cost.

Markup amount = 175% of $375.50

= 1.75 x $375.50

= $657.63

Selling price = Original cost + Markup amount

= $375.50 + $657.63

= $1,033.13

Therefore, the selling price of the diamond ring will be $1,033.13.

Answer 2

$1031.63

Explanation:

Mark-up refers to the amount or percentage added to the cost price of a product to determine its selling price. It represents the increase in price that a business applies to cover its expenses, generate profit, and account for other factors like overhead costs, operating expenses, and desired profit margin.

To calculate the selling price of the diamond ring, we need to add the mark-up amount to the cost price and round the result to the nearest cent.

To find the mark-up amount, multiply the cost price by the mark-up percentage:

`\begin{aligned}\textsf{Mark-up amount}&=\textsf{Cost price} * \textsf{Mark-up percentage}\\\\&=\$375.50 * 175\%\\\\&=\$375.50 * (175)/(100)\\\\&=\$375.50 * 1.75\\\\&=\$657.125\end{aligned}`

Therefore, the ring will be marked-up by $657.125.

To find the selling price, add the mark-up amount to the cost price:

`\begin{aligned}\textsf{Selling price}&=\textsf{Cost price} + \textsf{Mark-up amount}\\\\&=\$375.50 +\$657.125\\\\&=\$375.50 +\$657.125\\\\&=\$1032.625\end{aligned}`

Finally, round the selling price to the nearest cent:

`\large\boxed{\textsf{Selling Price} = \$1031.63}`

Therefore, the selling price of the diamond ring will be $1031.63, rounded to the nearest cent.