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Assume you own a sporting goods business. Find the selling price for a tent costing $387, based on a 25% markup on selling price.

$387/75% = $516

can anyone tell me if this is correct?

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9 answers

  1. The arithmetic is obviously correct, your calculator could have told you that.
    My question: why are you making that calculation?

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  2. I am not sure what you mean? Is the answer correct?

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  3. No.

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    Ms. Sue
  4. Could anyone please correct me?

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  5. Experiment with the numbers until you find a reasonable answer.

    Hint: $500 is too much.

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    Ms. Sue
  6. Is it 490.25 or 399.99?

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  7. Actually the answer is correct
    profit = 516-387 = 129
    markup based on selling price = 129/516 = .25
    markup based on cost price = 129/387 = .33..

    I just wanted Heyhi to explain to me why he performed that calculation.
    He seems to be obsessed only with the answer, whereas I am more obsessed with
    the analysis and procedure to obtain that answer.

    Secondly, most of his problems dealt with markups based on selling price, which is unusual. Of course if a profit is made then the markup based on selling price is always lower than the markup based on cost price. Perhaps the business wants to give the impression of a lower markup?

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  8. Thanks, Reiny. I was wrong and barking up the wrong tree.

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    Ms. Sue
  9. Yeah, I think that he was using a formula that's in my textbook, which if there's 25% off a selling price, take the selling price and divide by
    100% - discount percentage. So, $387/75% = $516.

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