A furniture store sells recliners at a 70% mark-up (based on price). If the recliner costs the store $240, what price will they charge?

Answer 1

1.70 x $240 = ____

Answer 2

That would be the answer for the markup on cost, but the 70% is a markup on selling price not cost.

Formula:

%Markup on cost=%markup on selling price/100% - % markup on selling price

x = 70%/100%-70%
x = 70%/30%
x = 233.333%

cost $240 x (233.33%) = $800

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Does this seem right?