To find the selling price of the CD set after applying a 40% markup on the cost of $20, you can use the following formula:
\[ \text{Selling Price} = \text{Cost} + (\text{Cost} \times \text{Markup Percentage}) \]
First, calculate the markup amount:
-
Markup Amount: \[ \text{Markup Amount} = \text{Cost} \times \text{Markup Percentage} = 20 \times 0.40 = 8 \]
-
Selling Price: \[ \text{Selling Price} = \text{Cost} + \text{Markup Amount} = 20 + 8 = 28 \]
Thus, the selling price of the CD set is $28.