Question

Market: $7Store: 350% markup what is the store's profit?Mark-up (350%)what is the selling price?Customer: receipt: the price of the shirt = ?Tax is 8.5%total of the shirt is ?

Answer 1

The cost price for the shirt is $7

CP = $7

Mark up = 350%

The mark up is given by the formula:

`\begin{gathered} \text{Mark}-up\text{ = }(SP-CP)/(CP)*100\% \\ 350\text{ = }(SP-7)/(7)*100 \\ (350*7)/(100)=\text{ SP-7} \\ 24.5=SP-7 \\ SP\text{ = 7+2.5} \\ SP\text{ = \$9.5} \end{gathered}`

Profit = Selling Price - Cost Price

Profit = 9.5 - 7

Store's Profit = $2.5

Tax % = 8.5%

Tax = 8.5% of the cost price

Tax = (8.5/100) x 7

Tax = 0.085 x 7

Tax = $0.595

Total = Tax + Cost Price

Total = $0.595 + $7

Total = $7.595