Question

A store is instructed by corporate headquarters to put a markup of ​25% on all items. An item costing 8​$ is displayed by the store manager at a selling price of ​2$. As an​ employee, you notice that this selling price is incorrect. Find the correct selling price. What was the​ manager's likely​ error?

Answer 1

part A:The correct selling price is $10

Part B:And, the error is that the manager put the markup percentage as a selling price instead of adding up the markup to the cost price

Explanation:

Explanation:

Answer 2

the correct selling price is $10

And, the error is that the manager put the markup percentage as a selling price instead of adding up the markup to the cost price

Explanation:

The computation is shown below:

Given that

Markup = 25%

Cost of an item = $8

Selling price of an item = $2

Based on the above information

The amount of markup would be

= 25% × 8%

= $2

Now amount after markup is

= $2 + $8

= $10

Hence, the correct selling price is $10

And, the error is that the manager put the markup percentage as a selling price instead of adding up the markup to the cost price