Sara is selling posters at the sale price of $12.00, and the markup percentage is 35 percent. What is the dollar amount of the markup?

Question

Quizplus · Accepted Answer

The markup percentage is applied to the cost price to find the markup amount. If the sale price is $12.00 and includes a 35% markup, we can find the cost price (C) and the markup amount (M) using the formula: Sale Price = C + M, and M = C * 35%. Rearranging the formula to find C gives us C = Sale Price / (1 + Markup Percentage) = $12.00 / 1.35 = $8.89 approximately. The markup amount is then $12.00 - $8.89 = $3.11, which is not an option, indicating a calculation mistake in the explanation. Correctly, to find the markup amount directly from the sale price and markup percentage, we should understand that the sale price represents 100% of the cost plus the 35% markup. However, the correct approach to find the markup amount directly is by understanding that the markup is based on the cost price, not the sale price. Without the cost price directly given, and given the mistake in the initial explanation, the correct calculation involves understanding the relationship between markup percentage and sale price differently. The correct approach is to backtrack from the sale price to the cost price using the markup formula incorrectly applied in the initial explanation. The correct explanation should start from the premise that the markup is a percentage of the cost price, but without the cost price or a direct formula involving only the sale price and markup percentage, the initial explanation led to an incorrect conclusion. The correct answer involves calculating the cost price first, which cannot be accurately done with the information provided in the initial explanation.

Sara Is Selling Posters at the Sale Price of $12