Question

A store owner buys a case of 144 pens for $28.80. He sells the pens for $0.40 each. The owner claims that they marked the pens up by 50% before selling them. Prove that the owner calculated their markup correctly. If they did not, how much of a markup actually occurred?

Answer 1

Answer: $0.3

Explanation:

Given

The owner buys 144 pens for $28.80 i.e. each pen costs

`(28.80)/(144)=\$0.2`

owner sells the pen at $0.4 i.e. price marked up by

`\Rightarrow (0.4-0.2)/(0.2)* 100=100\%`

So, the claim of the owner is incorrect

The actual increase in the price to get 50% markup

`\Rightarrow 0.2* (1+0.5)=\$0.3`