Question
The markup on a new van should be
Select one:
a.
b.
c.
o d.
Select one:
a.
b.
c.
o d.
Ask by Davison French. in the United States
Jan 24,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The van should be sold for $36,500.00 to achieve a 30% markup.
Solution
To find the selling price of the van to achieve the desired markup, we can use the formula for calculating the selling price based on the markup percentage.
Given:
- Markup percentage = 30%
- Cost price = $25,550
The formula to calculate the selling price is:
Substitute the given values into the formula:
Now, we can calculate the selling price.
Calculate the value by following steps:
Calculate the value by following steps:
- step0: Calculate:
- step1: Remove the parentheses:
- step2: Subtract the numbers:
- step3: Convert the expressions:
- step4: Multiply by the reciprocal:
- step5: Reduce the numbers:
- step6: Multiply the numbers:
The selling price of the van to achieve the desired markup of 30% should be $36,500.00.
Therefore, the correct answer is b. $36,500.00.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution Mind Expander
To achieve a 30% markup based on the selling price, we can set up the equation where
Now, solving for
So, the selling price should be
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!
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!
