Refer to Victor's Detailing. Assume the company uses an 80% markup to set the price on each job. What price would the company quote to a new customer?
A) $24
B) $30
C) $54
D) $84

Question

Quizplus · Accepted Answer

To find the price quoted to the customer, we need to start with the cost incurred by the company for a job. Let's assume this cost is x dollars. 
Using an 80% markup means that the selling price quoted to the customer is 80% more than the cost: 
Selling price = cost + 80% of cost 
Selling price = x + 0.8x 
Selling price = 1.8x 
We don't know the actual cost x, but we do know that the selling price is 54 dollars (from choice C). Therefore: 
1.8x = 54 
x = 30 
So the cost incurred by the company for a job is 30 dollars, and the selling price quoted to the customer using an 80% markup would be: 
Selling price = 1.8x = 1.8(30) = 54 dollars.