To calculate the retail price of an item that has a wholesale price of $25 and is marked up by 55%, you can use the following formula:
\[ \text{Retail Price} = \text{Wholesale Price} + \text{Markup} \]
First, calculate the markup:
\[ \text{Markup} = \text{Wholesale Price} \times \text{Markup Percentage} \]
Convert the percentage to a decimal:
\[ 55% = 0.55 \]
Now calculate the markup:
\[ \text{Markup} = 25 \times 0.55 = 13.75 \]
Now, add the markup to the wholesale price to get the retail price:
\[ \text{Retail Price} = 25 + 13.75 = 38.75 \]
Therefore, the retail price would be set at $38.75.