Question

a discount store marks up the merchandise. It sells by 55% if the wholesale price of a particular item is $25. What would the retail price be set at?

Answer 1

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**.