A furniture store purchases a lamp for $125. The store needs a 65% markup on cost.

Question

Question 1
Part 1: What is the increase in the cost of the lamp after the markup?
Responses
A
$81.25
$81.25
B
$73.55
$73.55
C
$65.00
$65.00
D
$43.75
$43.75
Question 2
Part 2: 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
$173.92

Answer 1

To solve the questions, we need to calculate the markup based on the lamp's cost and then determine the final price the customer will pay.

Question 1

Part 1: What is the increase in the cost of the lamp after the markup?

Cost of the lamp = $125
Markup percentage = 65%

Markup amount = Cost × Markup percentage
= $125 × 0.65
= $81.25

So the answer to Question 1 is:

A: $81.25

Question 2

Part 2: Considering the 65% increase, what will a customer pay for the lamp?

Final price = Cost + Markup amount
= $125 + $81.25
= $206.25

So the answer to Question 2 is:

B: $206.25