Question

3

Select the correct answer.
markup = original cost × percentage markup

selling price = original cost + markup

The manufacturing cost of a cell phone was $124. Sellers first marked up the cost by 20 percent. Sales were poor, so sellers decreased the markup to 15 percent. Calculate the old and new selling prices.

A.
old price: $170.00; new price: $148.80
B.
old price: $142.60; new price: $148.80
C.
old price: $148.80; new price: $142.60

Answer 1

The old selling price is $148.80 and the new selling price is $142.60.

Step-by-step explanation:

To calculate the old selling price, we need to find the markup amount and add it to the manufacturing cost.

Markup amount = $124 * 20% = $24.80

Old selling price = $124 + $24.80 = $148.80

To calculate the new selling price, we need to find the new markup amount and add it to the manufacturing cost.

New markup amount = $124 * 15% = $18.60

New selling price = $124 + $18.60 = $142.60