Question

A store buys sneakers for $20.00 and marks them up 250%. What is the selling price?

Answer 1

20*2.5 = $50 Gross margin $70 Selling price

Explanation:

Answer 2

`\$45`

Explanation:

`20+(2.5*20)=45`

Marking up means that the new value is added onto the original value.

As we are increasing the original price by 250% of the price, we need to multiply it by 2.5, as that is equal to 250%