Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. She first priced the frames at $100 each but sales were a bit slow. Jane decides to reduce the price for the frames to $80. What is her maintained markup in dollar terms?

Question

Quizplus · Accepted Answer

Using the formula: selling price = cost + markup

We can find the initial markup as follows:

$100 = cost + markup 
markup = $100 - cost

Jane bought the frames for $36 each, so the initial markup was:

markup = $100 - $36 = $64

When Jane reduced the price to $80, she still maintained the same markup of $64, since she didn't change the cost. Therefore, the maintained markup in dollar terms is $64.

The correct answer is C.

Jane Westerlund Owns a Small Retail Picture Frame Store in a Local