business math

Question

If the selling price is $ 18.00 and the markup is 30% , what is the dollar markup? a) $3.60 b) $3.94 c) $5.94 d) $6.00

Answer 1

The selling price is 18.00, so it has already been marked up.  So, 1.3x=$18.00.  Divide 18 by 1.3 to find the original cost. 18/1.3= 13.85.  This is the original price.  To find the dollar markup, subtract this amount from 18.00.  18.00 - 13.85= $4.15.  Unfortunately, that is not one of the choices.  But, it is the correct answer.

Answer 2

To find the dollar markup, multiply the selling price by the markup.

 

$18 × 0.30 = $5.40