A department store purchases certain tennis shoes for $48.00 and applies a markup of 30%. What is the retail price that the customer will pay at the department store?
answer = 62.40
Yes, that is correct!
The markup of 30% means that the department store is adding 30% of the cost to the price.
First, we find the amount of the markup:
30% of $48.00 = 0.30 * $48.00 = $14.40
Next, we add the markup to the cost:
$48.00 + $14.40 = $62.40
Therefore, the retail price that the customer will pay at the department store is $62.40.
To calculate the retail price that the customer will pay, we need to add the markup percentage to the purchase price.
Step 1: Calculate the markup amount:
Markup Amount = Purchase Price x Markup Percentage
In this case, the purchase price is $48.00, and the markup is 30%.
Markup Amount = $48.00 x 30% = $14.40
Step 2: Add the markup amount to the purchase price to find the retail price:
Retail Price = Purchase Price + Markup Amount
Retail Price = $48.00 + $14.40 = $62.40
Therefore, the customer will pay $62.40 as the retail price at the department store.