Question

Error Analysis A store is instructed by corporate headquarters to put a markup of 11% on all items. An item costing $18 is displayed by the store manager at a selling price of $2. As an employee, you notice that this selling price is incorrect. Find the correct selling price. What was the manager's likely error?

Answer 1

The correct selling price is $19.98 ($20) and the likely error is that the manager ommited the zero at the back of the 2

Here, we want to find the correct selling price

The markup here is 11%

And the selling price would be $18 + (11% of $18)

Mathematically, that would be;

`\begin{gathered} 18\text{ + }(11)/(100)\text{ }*\text{ 18} \\ \\ 18\text{ + (0.11 }*\text{ 18)} \\ \\ 18\text{ + 1.98} \\ \\ 18\text{ + 1.98 = 19.98} \end{gathered}`

To the nearest whole dollars, this is a value of $20

So what likely happened here is that the manager ommited the zero at the back of the 32