Question

Original price 66.00 Brandon was tired of singing to himself. Brandon saw that a hand-held music player was marked down of the original price. If the item was marked up by 1/2 before it was place on the sales floor, what was the price that the store paid for the music plauer? (Hint: You need to use the original price from the previous problem.) A. $42.67 B. 62.00 C. $56.89 D. 55.00

Answer 1

A. $42.67

Step-by-step explanation:

1. "Markup" is defined as the amount by which the selling price of an item is increased above its cost to the retailer. (Source: BusinessDictionary.com)

2. The formula for calculating markup is: markup = (selling price - cost) / cost. (Source: Investopedia)

3. To find the cost of an item to the retailer, we can use the formula: cost = selling price / (1 + markup). (Source: Khan Academy)

Now, let's work through the problem using these formulas:

1. First, we know that the original price of the hand-held music player was $66.00.

2. Next, we know that the item was marked up by 1/2 before it was placed on the sales floor. This means that the markup is 1/2, or 50%.

3. To find the cost of the item to the retailer, we can use the formula: cost = selling price / (1 + markup). In this case, the selling price is $66.00, and the markup is 50%, so:

cost = $66.00 / (1 + 0.5)

= $66.00 / 1.5

= $42.67