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

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

1 answer

To solve the questions, we first calculate the markup on the lamp's cost.

Question 1

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

Given:

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

To find the increase in cost due to the markup:

\[ \text{Markup} = \text{Cost} \times \text{Markup Percentage} = 125 \times 0.65 \]

Calculating that:

\[ \text{Markup} = 125 \times 0.65 = 81.25 \]

Increase in the cost of the lamp after the markup is $81.25. (Answer: A)


Question 2

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

To find the final price a customer pays for the lamp, we add the original cost of the lamp to the markup:

\[ \text{Final Price} = \text{Cost} + \text{Markup} = 125 + 81.25 \]

Calculating that:

\[ \text{Final Price} = 125 + 81.25 = 206.25 \]

The customer will pay $206.25 for the lamp. (Answer: B)


Final Answers:

  • Question 1: A ($81.25)
  • Question 2: B ($206.25)