Help! Very confused on how to do this?

Question

A shirt has a $20 wholesale price and is marked up 50%. the sales tax is 5%. What is the total cost of the shirt?

Answer 1

(20)(1.5)(1.05)=31.5

 

The answer is the product of the wholesale price (20), the constant 1.5 to indicate the 50% markup, and the constant 1.05 to indicate the 5% sales tax.

 

The total cost of the shirt is $31.50.

Answer 2

The whole sale price of a product is the price that is placed on the tag. If we see a shirt that is $20.00 that is marked up by 50%, we know that we pay 100% of the whole sale price plus an additional 50% of the whole sale price. With just the mark-up the new cost becomes:

 

• 1.5*20.00 = 30.00   <--- The 1.5 comes from adding 100% and 50%

 

If we include sales tax we add an additional 5% or 0.05 to the total percentage (We are paying 155% or 55% more than the whole sale value).

 

• 1.55*20.00 = 31.00

 

The shirt costs $31.00.

Answer 3

Your markup is 50% of the wholesale price, when something is a percent OF a number you multiply.  50% times $20 is 0.50 * 20 = 10.  So the retail price is $30.  Then the sales tax is 5% OF the price so 0.05 * 20 = 1.  Total price = $31.

 

All the best

 

Lori