Question

A store owner buys cell phones for $40 and marks up the price by 25%. What is the sale price of a phone?

Answer 1

$50

Explanation:

Price of the cell phone bought p = $40

% of markup in price = 25%

Selling price of the cell phone = p + (%)p

Selling price of the cell phone = P + (0.25)p

Selling price of the cell phone = p + 0.25p

Selling price of the cell phone = 1.25p

Selling price of the cell phone = 1.25 * $40

Selling price of the cell phone = $50