The markup on a new van should be \( 30 \% \) based on selling price. If the seller paid \( \$ 25,550 \) for one, then how much should it be sold for to achieve the desired markup? Select one: a. \( \$ 26,122.50 \) b. \( \$ 36,500.00 \) c. \( \$ 45,255.71 \) o d. \( \$ 28,536.25 \)

To achieve a 30% markup based on the selling price, we can set up the equation where \( S \) is the selling price: \[ S - 0.30S = 25,550 \] \[ 0.70S = 25,550 \] Now, solving for \( S \): \[ S = \frac{25,550}{0.70} \] \[ S = 36,500 \] So, the selling price should be \( \$ 36,500.00 \). The correct answer is (b) \( \$ 36,500.00 \). Now let's dive a bit deeper! Understanding the concept of markup is crucial in pricing strategies. When a seller determines the selling price based on the cost of acquiring a product, it allows for sustainable profits. In this case, a 30% markup ensures that the seller not only recoups the cost but also makes a profit that covers expenses and contributes to overall business growth! When setting prices, common mistakes include miscalculating the markup percentage or not accounting for additional expenses like financing and maintenance. It's essential to ensure that your costs are accurately assessed. For a more successful pricing strategy, always evaluate market conditions and competitor pricing to remain competitive and profitable!