Solve for the missing numbers. Markup is based on cost. Round dollar amounts to the nearest cent.
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Question

Quizplus · Accepted Answer

Since the markup is based on cost, we can set up the equation: 
Cost + Markup = Price 
We are given that the cost is $538.50, and the markup is 8%. The markup is calculated as a percentage of the cost, so we can find it by multiplying the cost by 0.08: 
$538.50 x 0.08 = $43.08 
Adding the markup to the cost gives us: 
$538.50 + $43.08 = $581.58 
Therefore, the price is $581.58. Looking at the answer choices, only option C has a price of $581.58, which means it is the best choice. Markup is based on cost, so we need to calculate the cost of the item. 
Let's use the formula: Selling Price = Cost + Markup
From the given information, we know that the selling price is $29.99 and the markup rate is 20%. 
Let's use algebra to solve for the cost:
Selling Price = Cost + Markup 
$29.99 = Cost + 0.2Cost 
$29.99 = 1.2Cost 
Cost = $24.99 
Now we can use the cost to find the markup: 
Markup = Selling Price - Cost 
Markup = $29.99 - $24.99 = $5.00

Using this information, we can check each answer choice to see if it matches our calculations:

A) Cost = $15.99, Markup = $14.00
B) Cost = $16.99, Markup = $13.00
C) Cost = $24.99, Markup = $5.00
D) Cost = $32.99, Markup = $-3.00 (This choice doesn't make sense because the markup is negative)

Therefore, the best choice is C, with a cost of $24.99 and a markup of $5.00.

Solve for the Missing Numbers