Chapter 6.5, Problem 1GP

To determine

To find: Selling price.

Answer to Problem 1GP

Selling price $=$$\$37.5$

Explanation of Solution

Given information:

Cost price $=\$30$

Markup percent $=25\%$

We know

Selling price $=$ Cost price $+$ Markup

Given

Markup is $25\%$ of cost price that is $\$30$

Therefore,

Markup $=\left(\frac{25}{100}\right)\times 30$

  $\Rightarrow$ Markup $=\left(0.25\right)\times 30$

  $\Rightarrow$ Markup $=7.5$

Therefore,

Selling price $=$$\$30+\$7.5$

  $\Rightarrow$ Selling price $=$$\$37.5$