Question

The local bakery applies a 155% markup on all baked goods. If it costs them $3.50 to make a batch of cookies, what is their sale price?

Answer 1

Selling Price = $8.93

Explanation:

Markup is the amount added to cost price to sell it for a greater price.

The markup formula is:

`Markup \ Percentage = (SP-C)/(C)*100`

Where

SP is selling Price

C is cost

Given,

Markup Percentage = 155

C = 3.50

We find the sale price "SP" to be:

`Markup \ Percentage = (SP-C)/(C)*100\\155=(SP-3.5)/(3.5)*100\\155=(100SP-350)/(3.5)\\155*3.5=100SP-350\\542.5=100SP-350\\100SP=892.5\\SP=8.925`

Rounding to nearest cent, we get:

Selling Price = $8.93