Stanley's Salon needs to purchase hairspray for it's chain of store locations to be sold at its merchandise counter. UltraHold retails for $15 per bottle. If the target markup rate is 30%, the most Stanley can pay per bottle is $9.00.

Question

Stanley's Salon needs to purchase hairspray for it's chain of store locations to be sold at its merchandise counter. UltraHold retails for $15 per bottle. ​If the target markup rate is 30%, the most Stanley can pay per bottle is $9.00.

Quizplus · Accepted Answer

The target markup rate is 30%, which means that the salon wants to sell the hairspray for 30% more than they paid for it. If the hairspray retails for $15 per bottle, then the salon paid $15 / 1.30 = $9.00 per bottle.

Stanley's Salon Needs to Purchase Hairspray for It's Chain of Store