Question 1

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.

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.

Question 2

To calculate the cost when the selling price and percent markup based on the selling price are known, use the formula:
​
Cost = Percent Markup on Selling Price(100% - Selling Price)​

Accepted Answer

The correct formula to calculate the cost when the selling price and percent markup based on the selling price are known is: Cost = Selling Price / (1 + Percent Markup on Selling Price). The provided formula incorrectly suggests subtracting the selling price from 100%, which is not how markup calculations are performed.

Question 3

Grasshopper Games purchases video game consoles at a price of $200 each. They then sell the consoles for $​325 each.
​
The amount of the markup was $125.
​
The percent markup was 41.67%

Accepted Answer

The markup amount is $125 ($325 - $200), and the percent markup based on the cost is calculated as ($125 / $200) * 100 = 62.5%, not 41.67%. Therefore, the statement about the percent markup being 41.67% is incorrect, but since the question only asks about the correctness of both statements as a whole, and one statement is indeed correct, the overall answer is nuanced. However, focusing strictly on the provided statements, the calculation provided in the explanation does not match the claim, indicating a misunderstanding in the initial response. The correct calculation for the percent markup based on the cost indeed shows that the initial response should consider the accuracy of each statement individually.

Question 4

To calculate the selling price when the cost and the percent of markup based on the selling price are known, you would use the formula:
​ $$\frac { \text { cos t } } { \text { $100 \%$ - Percent markup on selling price  } }$$ ​

Accepted Answer

The formula calculates the selling price by dividing the cost by the difference between 100% and the markup percentage, which adjusts the cost to account for the markup based on the selling price.

Question 5

The selling price for a new Superbike brand bicycle is $325. If a 50% markup was used, what was the cost to the retailer?
​The solution for the above problem is $162.50

Accepted Answer

The cost to the retailer was $216.67 because a 50% markup on the cost means the selling price is 150% of the cost. So, $325 is 150% of the cost, and to find the cost, you divide $325 by 1.5 (or 150%), which gives you approximately $216.67.

Question 6

To calculate the cost when the selling price and percent of the markup are known, you would use the following forumla:
​ $$\operatorname { cost } = \frac { 100 \% + \text { percent of markup on cost } } { \text { selling price } }$$

Accepted Answer

The correct formula to calculate the cost when the selling price and percent of markup are known is: $$\operatorname { cost } = \frac { \text { selling price } } { 1 + \text { percent of markup on cost } }$$. The given formula incorrectly suggests division by the selling price and addition of percentages in the numerator.

Question 7

To calculate the percent markup based on the selling price (also known as the rate), you would use the following formula:
​
​ $$\frac { \text { Selling Price (base)  } } { \text { Markup (portion)  } }$$

Accepted Answer

The correct formula for percent markup based on the selling price is $\frac{\text{Markup (portion)}}{\text{Selling Price (base)}} \times 100\%$.

Quiz 8: Markup and Markdown

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.

To calculate the cost when the selling price and percent markup based on the selling price are known, use the formula: Cost = Percent Markup on Selling Price(100% - Selling Price)

Grasshopper Games purchases video game consoles at a price of $200 each. They then sell the consoles for $325 each. The amount of the markup was $125. The percent markup was 41.67%

To calculate the selling price when the cost and the percent of markup based on the selling price are known, you would use the formula: $\frac { \text { cos t } } { \text { 100 \% - Percent markup on selling price } }$

The selling price for a new Superbike brand bicycle is $325. If a 50% markup was used, what was the cost to the retailer? The solution for the above problem is $162.50

To calculate the cost when the selling price and percent of the markup are known, you would use the following forumla: $\operatorname { cost } = \frac { 100 \% + \text { percent of markup on cost } } { \text { selling price } }$

To calculate the percent markup based on the selling price (also known as the rate), you would use the following formula: $\frac { \text { Selling Price (base) } } { \text { Markup (portion) } }$

Quiz 8: Markup and Markdown

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.

To calculate the cost when the selling price and percent markup based on the selling price are known, use the formula: ​ Cost = Percent Markup on Selling Price(100% - Selling Price)​

Grasshopper Games purchases video game consoles at a price of $200 each. They then sell the consoles for $​325 each. ​ The amount of the markup was $125. ​ The percent markup was 41.67%

The selling price for a new Superbike brand bicycle is $325. If a 50% markup was used, what was the cost to the retailer? ​The solution for the above problem is $162.50

To calculate the percent markup based on the selling price (also known as the rate), you would use the following formula: ​ ​ Selling Price (base) Markup (portion) \frac { \text { Selling Price (base) } } { \text { Markup (portion) } } Markup (portion) Selling Price (base) ​

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.

To calculate the cost when the selling price and percent markup based on the selling price are known, use the formula: Cost = Percent Markup on Selling Price(100% - Selling Price)

Grasshopper Games purchases video game consoles at a price of $200 each. They then sell the consoles for $325 each. The amount of the markup was $125. The percent markup was 41.67%

The selling price for a new Superbike brand bicycle is $325. If a 50% markup was used, what was the cost to the retailer? The solution for the above problem is $162.50

To calculate the percent markup based on the selling price (also known as the rate), you would use the following formula: $\frac { \text { Selling Price (base) } } { \text { Markup (portion) } }$