A discount store marks up the merchandise it sells by 55%. If wholesale price a particular item is $25, what should the retail price be?

1 Answer
Jan 24, 2018

Answer:

See a solution process below:

Explanation:

The formula for determining the mark up price of an item is:

#p = c + (c * m)#

Where:

#p# is the price (retail price) of the item: what we are solving for.

#c# is the cost (wholesale price) of the item: $25 for this problem.

#m# is the mark up percent: 55% for this problem. "Percent" or "%" means "out of 100" or "per 100", Therefore 55% can be written as #55/100#.

Substituting and calculating #p# gives:

#p = $25 + ($25 * 55/100)#

#p = $25 + ($1375)/100#

#p = $25 + $13.75#

#p = $38.75#

The retail price of the item is $38.75