A jewelry store has been offered a special price on a line of pearls.These pearls cost $160 per strand and can retail at $360 per strand.What markup will the jeweler obtain?

Question

Quizplus · Accepted Answer

To find the markup percentage, we need to calculate the difference between the selling price and the cost price, and then divide by the cost price.

Markup = (Selling price - Cost price) / Cost price

Here, the cost price of the pearls is $160, and the selling price is $360.

Markup = ($360 - $160) / $160 = $200 / $160 = 1.25

This means that the jeweler's markup is 125%, or 125/100 = 1.25 as a decimal.

To convert to a percentage, we multiply by 100:

Markup = 1.25 x 100% = 125%

Therefore, the correct answer is B, 56 percent.

A Jewelry Store Has Been Offered a Special Price on a Line