Assume you own a sporting goods business. Find the selling price for a tent costing $387, based on a 25% markup on selling price.

Question

$387/75% = $516

can anyone tell me if this is correct?

Answer 1

The arithmetic is obviously correct, your calculator could have told you that.
My question: why are you making that calculation?

Answer 2

I am not sure what you mean? Is the answer correct?

Answer 3

No.

Answer 4

Could anyone please correct me?

Answer 5

Experiment with the numbers until you find a reasonable answer.

Hint: $500 is too much.

Answer 6

Is it 490.25 or 399.99?

Answer 7

Actually the answer is correct
profit = 516-387 = 129
markup based on selling price = 129/516 = .25
markup based on cost price = 129/387 = .33..

I just wanted Heyhi to explain to me why he performed that calculation.
He seems to be obsessed only with the answer, whereas I am more obsessed with
the analysis and procedure to obtain that answer.

Secondly, most of his problems dealt with markups based on selling price, which is unusual. Of course if a profit is made then the markup based on selling price is always lower than the markup based on cost price. Perhaps the business wants to give the impression of a lower markup?

Answer 8

Thanks, Reiny. I was wrong and barking up the wrong tree.

Answer 9

Yeah, I think that he was using a formula that's in my textbook, which if there's 25% off a selling price, take the selling price and divide by
100% - discount percentage. So, $387/75% = $516.