**if a store uses a selling price-based markup of 40% and an item costs the store $300, what selling price would the store set for the item?**

if a store uses a selling price-based markup of 40% and an item costs the store $300, what selling price would the store set for the item?

**Answer**

Selling Price is $500 Mark up on selling price has this Markup Amount / Selling Price = Markup Percentage.

OR Item Cost / (1.00 - Mark up Percentage) = Price.

Since the problem gave us the item cost and markup percentage, we use the 2nd Item cost = 300 selling price-based markup = 40% 300 / (1-0.40) = 300 / 0.60 = 500 Selling Price.

Selling Price : 500 Item cost : - 300 Mark up amt : 200 With the above figures, we can compute for the mark up percentage using the 1st formula.

Mark up amount / selling price = mark up percentage 200 / 500 = 0.40 or 40%

##### Virtual Teaching Assistant: Colleen R.

##### Question Level: Basic

##### Karma: Free

##### Upload Date: 5/31/2017

This 54 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 262 views.