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?

Question

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

???????????????
Does this seem right?

Answer 1

This is a simple question, why are you making it so complicated?

Cost to store = 240
markup = 70%
so markup = .7(240) = 168
so selling price = 408

or in one step ....

selling price = 1.7(240) = 408

(you have a 133.3% markup)

Answer 2

It says the mark up is based on price not cost so i believe that Reiny's answer is wrong because her answer is based on cost not price.

Answer 3

Cost + Mark-up = Price
cost=$240, mark-up=.7S, price=S
$240+.7S=S
$240=.3S
S=$800

Answer 4

$800