Beach Bicycles sells two-seater bicycles.
Its markup rate is . Which equation
represents the new price for a bicycle, .
given an original price, ?
(A)
(B)
©
(4)

To find the new price of a bicycle with a markup rate of , you need to start with the original price and add of that price to it. This can be calculated as follows: . So the correct equation is .

Additionally, understanding markup can be really helpful in various business scenarios. For instance, when setting prices for products, businesses need to consider not only the cost of production but also factors like competition and consumer demand. Calculating the right markup allows companies to remain profitable while still appealing to customers.