The Gap spends $5.25 on each shirt, then uses a markup of 210%. What is the markup? What is the new price?

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Answer 1 · 2018-04-27T12:42:27

See a solution process below:

The formula for calculating the price of an item after a mark up is:

#p = c * (c * m)# Where

#p# is the price of the item after mark up: what we are solving for in this problem.

#c# is the cost of the item: $5.25 for this problem.

#m# is the mark up percent: 210% for this problem. "Percent" or "%" means "out of 100" or "per 100", Therefore 210% can be written as #210/100#.

Substituting a calculating #p# gives:

#p = $5.25 * ($5.25 * 210/100)#

#p = $5.25 * ($1102.5)/100#

#p = $5.25 * $11.025#

#p = $5.25 * $11.03#

#p = $16.28#

The markup is: $11.03

The new price is: $16.28