Ski Market sells snowboards. Ski Market knows that the most people will pay for the snowboards is $129.99. Ski Market is convinced that it needs a 45% markup based on cost. The most that Ski Market can pay to its supplier for the snowboards is:

Question

Quizplus · Accepted Answer

To find the maximum cost Ski Market can pay its supplier, we use the formula for calculating the selling price based on markup on cost: Selling Price = Cost + (Markup Percentage * Cost). Given that the selling price is $129.99 and the markup percentage is 45%, we can rearrange the formula to solve for cost: Cost = Selling Price / (1 + Markup Percentage). Plugging in the numbers: Cost = $129.99 / (1 + 0.45) = $129.99 / 1.45 ≈ $89.65, which is not listed among the options provided.

Ski Market Sells Snowboards