Question

The manufacturing cost of a cell phone was $136. Sellers first marked up the cost by 25 percent. Sales were poor, so sellers decreased the markup to 17 percent. Calculate the old and new selling prices.

Answer 1

old price was $170; new price is $159.12

Answer 2

old price was $170; new price is $159.12

Explanation:

1) Formula given:

Selling price = original cost + mark up value

2) Old price = original cost + 25% (original cost)

Old price = $136 + 35% ($136) = $136 + 0.25×$136 = $136 + 34 = $170

3) New price = original cost + 17% (original cost)

= $136 + 17% ($136) = $136 + 0.17×$136 = $136 + $23.12 = $159.12