Markup on the cost of a freezer

Question

Chin Yov, store manager for Best Buy does not know how to price a GE freezer that cost the store $620. Chin knows that his boss wants a 25% markup on cost. How much should Chin price the freezer?

Answer 1

Original Price of Freezer = $620

 

Markup Percent = 25%

 

Final Price of Freezer = x

 

Solution

 

So the boss wants the final price to be 25% more of the original price.

What you have to do is find 25% of the original price $620 and add the resulting amount to original amount.

 

So, 25% of 620

 

 25 × 620

100

 

Make it ease......25/100 = 1/4

 

so,   1   × 620
       4

 

    620    

      4         =  155

 

So 25% of $620 is $155.

 

Now the final price 'x' = $620 + $155

 

x = $775

 

 

Answer 2

$620x.25=$155

$620+$155 = $775

 

 

Answer 3

25% markup means that we want to add 25% of the item's cost to its cost. There are a couple ways to do this.

 

1. Multiply the cost by 25% and add that result to the item's cost. $620 X 25% = $620 X 0.25 = $155;

$620 + $155 = $775.

 

2. Since the cost of the item can be represented by $620 X 100% (or 1), we can simply multiply the cost by 125%, or 1.25; $620 X 1.25 = $775.

 

In business, multiplying prices by "one point something" is a fairly common tactic. It makes computing retail prices and gross totals (with sales taxes) very simple.

Answer 4

Hi Faye;

25%=0.25

$620+[($620)(0.25)]

1.25($620)=$775