Question

Brian May, guitarist for Queen, does not know how to price his signature Antique Cherry Special that cost him £325 to make. He knows he wants 60% markup on cost. What price should Brian May ask for the guitar?

Answer 1

Answer: Brian should ask a price of £520 for the guitar.

Explanation:

Given : Making cost of guitar= £325

Mark up percentage = 60%=0.60 [we divide percentage by 100 to convert into decimal]

Now , the price should be asked by Brian May for the guitar would be :

(Making cost of guitar) + 60% of (Making cost of guitar)

=(Making cost of guitar) + (0.60) x (Making cost of guitar)

= (Making cost of guitar) x (1+0.60) [By distributive property]

= (£325) x (1.60)

= £520

Hence, Brian should ask a price of £520 for the guitar.