Question

A store is instructed by corporate headquarters to

put a markup of 25% on all items. An item costing $16 is displayed by the store manager at a selling price of $4. As an employee, you notice that this selling price is incorrect. Find the correct selling price. What was the manager's likely error?

Can someone help? It would be appreciated! ♡︎

Answer 1

The correct selling price of an item that costs $16 with a 25% markup should be $20. The manager appeared to have mistaken the markup amount for the selling price rather than adding it to the original cost.

Step-by-step explanation:

You noticed that an item costing $16 was marked up incorrectly by the store manager. To find the correct selling price, we need to add a 25% markup to the original cost of the item. The calculation is as follows:

• Convert the markup percentage to a decimal by dividing by 100: 25% / 100 = 0.25.
• Multiply the original cost of the item by the decimal markup to find the markup amount: $16 × 0.25 = $4.
• Add the markup amount to the original cost to find the selling price: $16 + $4 = $20.

The correct selling price of the item should be $20. It appears the manager's likely error was that they treated the markup amount as the selling price instead of adding it to the original cost.

Answer 2

Find out the selling price.

To prove

As given

A store manager instructs his employees to mark up all the items by 25%. An item that the store bought for $16.

25% is written in the decimal form.

= 0.25

25% of the $16= 0.25 × 16

= $4

Selling price of the item = Original price of item + 25% of the $16

= $16 + $4

= $ 20

Therefore the selling price of the item is $20.

Step-by-step explanation:

I was gonna steal the points but you seem nice. Have a good day!