Given the following information determine Selling Price Cost

Given the following information, determine Selling Price: Cost = $50, Markup = 30% $65.00 $71.43 $38.46 None of the above

Solution

Markup is reflected as a percentage by which initial price is set above product cost as reflected in this formula:

Markup Amount = Markup Percentage
    Item Cost

The calculation for setting initial price is determined by simply multiplying the cost of each item by a predetermined percentage then adding the result to the cost:

Item Cost + (Item Cost x Markup Percentage) = Price

Selling Price = 50 + (50*0.30) = 65$