Business Math problem

Question

A comforter sells for $40 dollars and is marked up 40% of the selling price. What is the cost of the comforter?

Answer 1

Initial selling price = $40

Final selling price = ? 

• What we are being asked
• What we know is that the final selling price is an increase of 40% of the initial selling price
• This means that our final will be MORE than our initial

 

Final selling price = (100% of initial selling price) + (40% of initial selling price) = 140% of initial selling price

• 100% as a decimal = 1.0
• 40% as a decimal = .40
• 140% as a decimal = 1.40

 

Final selling price = 1.40 x Initial selling price