Question

Games Galore Super Store buys the latest video game at a wholesale price of $30.00. The markup rate at Game's Galore Super Store is 40%. You use your allowance to purchase the game at the store. How much will you pay, not including tax and explain your reasoning. *

Answer 1

$42

Explanation:

By definition, Markup is the difference between a product's selling price and cost as a percentage of the cost.

For example, if a product sells for $125 and costs $100, the additional price increase is ($125 – $100) / $100) x 100 = 25%.

Given data

firstly let us solve for 40% of $30

=40/100*30

=0.4*30

=$12

therefore the sale price will be the markup rate plus the initial price

Hence the you will have to pay 12+30=$42