Question

If you add a mark up of 40% and the cost price is R75-00, the product will sell at…..

A.
R115

B.
R150

C.
R105

D.
R15

Answer 1

To calculate the selling price after adding a markup of 40% to the cost price, you can use the following formula:

\[
\text{Selling Price} = \text{Cost Price} + (\text{Cost Price} \times \text{Markup Percentage})
\]

Given:
- Cost Price = R75.00
- Markup Percentage = 40% = 0.40

Now, calculate the markup amount:

\[
\text{Markup Amount} = R75.00 \times 0.40 = R30.00
\]

Then, add the markup amount to the cost price to find the selling price:

\[
\text{Selling Price} = R75.00 + R30.00 = R105.00
\]

So, the product will sell at **R105.00**.

The correct answer is **C. R105**.