Question

A furniture store purchases a lamp for $125. The store needs a 65% markup on cost.
Considering the 65% increase, what will a customer pay for the lamp?
Responses

A$218.47
$218.47
B$206.25
$206.25
C$192.83
$192.83
D$173.92

Answer 1

To calculate the markup on the cost, we need to find 65% of $125.

Markup = 65/100 * $125 = $81.25

To find the customer's price, we add the markup to the cost price:

Customer's price = Cost price + Markup = $125 + $81.25 = $206.25

Therefore, the customer will pay $206.25 for the lamp.

The correct answer is option B: $206.25.