Question

The local furniture store pays $300 for a dining room table and sells it with a 40% markup.

What is the selling price of the dining room table?

Answer 1

$420!

Explanation:

Answer 2

$420

Explanation:

The wholesale price is $300 and the markup is 40% of that, or

0.40($300) = $120

and so the selling price is $300 + $120 = $420

An easier way to calculate this is to multiply $300 by (1.00 + 0.40), or (1.40), which again comes out to $420.