Asked by Heyhi

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

$387/75% = $516

can anyone tell me if this is correct?
Answered by Reiny
The arithmetic is obviously correct, your calculator could have told you that.
My question: why are you making that calculation?
Answered by Heyhi
I am not sure what you mean? Is the answer correct?
Answered by Ms. Sue
No.
Answered by Heyhi
Could anyone please correct me?
Answered by Ms. Sue
Experiment with the numbers until you find a reasonable answer.

Hint: $500 is too much.

Answered by Heyhi
Is it 490.25 or 399.99?
Answered by Reiny
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?
Answered by Ms. Sue
Thanks, Reiny. I was wrong and barking up the wrong tree.

Answered by CDouble
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.
There are no AI answers yet. The ability to request AI answers is coming soon!