Asked by Karlene Francis on Jun 30, 2024
Verified
The rate of mark-up on selling price is 20% for an item that cost the retailer $84. What is the selling price?
A) $67.20
B) $16.80
C) $58.00
D) $105.00
E) $26.00
Mark-up
The difference between the cost of a good and its selling price, expressed as a percentage over the cost.
Selling Price
The price at which a product or service is offered to the buyer.
Retailer
A business entity that sells goods or services directly to consumers, acting as the final link in the supply chain.
- Determine the mark-up percentage over cost and examine its influence on pricing policies.
- Assess the linkage between the selling price, the cost price, and the rate of profitability.
Verified Answer
MY
Mayank YadavJul 03, 2024
Final Answer :
D
Explanation :
The mark-up rate on the selling price means that the profit is 20% of the selling price. Let the selling price be xxx . Thus, x−84=0.20xx - 84 = 0.20xx−84=0.20x . Solving for xxx , we get x=105x = 105x=105 .
Learning Objectives
- Determine the mark-up percentage over cost and examine its influence on pricing policies.
- Assess the linkage between the selling price, the cost price, and the rate of profitability.