Christine did not mark the price of the clarinet correctly. While it is true that a 25% markup on a $75 purchase price would result in a selling price of $100, the formula used to calculate the markup is incorrect.
Instead of subtracting the purchase price from 100 and using that value as the markup, Christine should have added 25% of the purchase price to the purchase price itself. This would result in a markup of $18.75 ($75 * 0.25) and a selling price of $93.75 ($75 + $18.75).
Therefore, the correct price tag for the clarinet should have been $93.75 instead of $100.
A music store typically marks up the instruments it sells by 25%. Christine works at this music store. The store recently purchased a clarinet for $75. Christine marks this clarinet with a $100 price tag because 100 – 75 = 25 and 25 is 25% of 100. Did Christine mark the price of this clarinet correctly? Explain your reasoning. how is this wrong
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