Question

A clothing store purchases T-shirts for

$4.00 each and then marks up the price
of each by 55%. What is the markup and
new price of each T-shirt?

Answer 1

The mark up is $2.20 and the new price of each T-shirt is $6.20.

Explanation:

Before we find the new price of each T-shirt we must find the markup (by how much were raising the price).

The problem states each T-shirt costs $4.00, but then marks up the price of each by 55%.

Step 1 would be to find 55% of $4.00.

0.55 * 4 = 2.2

So that is the mark up, the price is going up by $2.20. To find the new price of each T-shirt, you take that $2.20 and add it to the original $4.00.

$4.00 + $2.20 = $6.20

So the mark up is $2.20 and the new price of each T-shirt is $6.20.