A retailer who buys a product for $19.75 and has a desired markup of retail price of 55% should establish a retail price of $43.89.

Question

Quizplus · Accepted Answer

To calculate the retail price, we add the desired markup percentage to the cost price and get:

Retail price = Cost price + (Desired markup percentage x Cost price)
Retail price = $19.75 + (55% x $19.75)
Retail price = $19.75 + $10.86
Retail price = $30.61

Therefore, the given statement is false. The correct retail price with a 55% markup on a cost price of $19.75 would be $30.61, not $43.89.

A Retailer Who Buys a Product for $19