The rate of markup on selling price is 20% for an item that cost the retailer $84. What is the selling price?
A) $67.20
B) $16.80
C) $58.00
D) $105.00
E) $26.00

Question

Quizplus · Accepted Answer

The markup on selling price formula is: Selling Price = Cost / (1 - Rate of Markup). Here, the cost is $84 and the rate of markup is 20% or 0.20. So, Selling Price = $84 / (1 - 0.20) = $84 / 0.80 = $105.

The Rate of Markup on Selling Price Is 20% for an Item