If a retailer pays $24 for an item and marks it up by 25%, what is the selling price?

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Multiple Choice

If a retailer pays $24 for an item and marks it up by 25%, what is the selling price?

To calculate the selling price of an item after applying a markup, you first determine the amount of the markup based on the original purchase price. In this case, the retailer pays $24 for the item and applies a markup of 25%. First, calculate the markup amount by multiplying the cost price by the markup percentage: Markup Amount = Cost Price × Markup Percentage Markup Amount = $24 × 0.25 = $6 Next, add the markup amount to the original cost price to find the selling price: Selling Price = Cost Price + Markup Amount Selling Price = $24 + $6 = $30 Thus, the selling price of the item after the markup is $30, which corresponds to the correct choice. This process of determining the selling price from a cost price and a percentage markup is a fundamental concept in retail pricing strategies.

To calculate the selling price of an item after applying a markup, you first determine the amount of the markup based on the original purchase price. In this case, the retailer pays $24 for the item and applies a markup of 25%.

First, calculate the markup amount by multiplying the cost price by the markup percentage:

Markup Amount = Cost Price × Markup Percentage

Markup Amount = $24 × 0.25 = $6

Next, add the markup amount to the original cost price to find the selling price:

Selling Price = Cost Price + Markup Amount

Selling Price = $24 + $6 = $30

Thus, the selling price of the item after the markup is $30, which corresponds to the correct choice. This process of determining the selling price from a cost price and a percentage markup is a fundamental concept in retail pricing strategies.

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