The markup on a home spa should be \( 30 \% \) based on selling price. If the seller paid \( \$ 5,900 \) for one, then how much should it be sold for to achieve the desired markup? Select one: a. \( \$ 7,375.00 \) o b. \( \$ 6,333.33 \) c. \( \$ 6,170.00 \) d. \( \$ 8,428.57 \)

To find the selling price based on a 30% markup on the selling price, we can use the formula: \[ \text{Selling Price} = \frac{\text{Cost}}{1 - \text{Markup Percentage}} \] Here, the cost is $5,900 and the markup percentage is 30% (or 0.30). Calculating the selling price: \[ \text{Selling Price} = \frac{5900}{1 - 0.30} = \frac{5900}{0.70} = 8,428.57 \] So, the correct answer is d. \( \$ 8,428.57 \). --- The concept of markup pricing is super fun because it’s all about understanding the value addition! When sellers price items, they consider both costs and what customers are willing to pay, creating profit margins that support their business goals. Knowing how to calculate this can empower you to price your products wisely! If you're ever in a pricing pickle, remember to double-check your percentages and formulas. A common mistake is confusing markup based on cost versus selling price, which can lead to underpricing or overpricing your items. Tracking your costs accurately can help you maximize your profits without pricing yourself out of the market!