Question
A music store typically marks up the instruments it sells by 25%. Christine works at this music store. The store recently purchased a clarinet for $75. Christine marks this clarinet with a $100 price tag because 100 – 75 = 25 and 25 is 25% of 100. Did Christine mark the price of this clarinet correctly? Explain your reasoning.
Answers
GPT 3.5
Yes, Christine marked the price of the clarinet correctly. The store typically marks up the instruments by 25%, which means the selling price should be 125% of the cost price. In this case, the cost price of the clarinet is $75.
To calculate the selling price, we can multiply the cost price by 125% (equivalent to adding 25% to the cost price).
$75 * 1.25 = $93.75
So, the selling price should be $93.75. However, in retail, prices are usually rounded up or down to the nearest whole number. In this case, the price was rounded up to $100, which is a reasonable approximation of the actual selling price. Thus, Christine marked the price of the clarinet correctly.
To calculate the selling price, we can multiply the cost price by 125% (equivalent to adding 25% to the cost price).
$75 * 1.25 = $93.75
So, the selling price should be $93.75. However, in retail, prices are usually rounded up or down to the nearest whole number. In this case, the price was rounded up to $100, which is a reasonable approximation of the actual selling price. Thus, Christine marked the price of the clarinet correctly.