Calculating the Markup Value

Oct 13, 2025 by magicalceylontours.com 72 views

Understanding the Problem

In this problem, we are given the original cost of an item, which is $784.50, and the markup percentage, which is 6.5%. We need to calculate the selling price of the item using the formula: selling price = original cost + markup value.

The Formula: Selling Price = Original Cost + Markup Value

The formula to calculate the selling price is a simple addition of the original cost and the markup value. However, to find the markup value, we need to multiply the original cost by the markup percentage.

Calculating the Markup Value

To calculate the markup value, we need to multiply the original cost by the markup percentage. The markup percentage is given as 6.5%, which can be written as 0.065 in decimal form.

Markup Value = Original Cost x Markup Percentage
Markup Value = $784.50 x 0.065
Markup Value = $51.07

Calculating the Selling Price

Now that we have the markup value, we can calculate the selling price by adding the original cost and the markup value.

Selling Price = Original Cost + Markup Value
Selling Price = $784.50 + $51.07
Selling Price = $835.57

Comparing the Calculated Selling Price with the Options

Now that we have calculated the selling price, we can compare it with the options given in the problem.

Option	Selling Price
A	$509.95
B	$831.57
C

Based on our calculation, the selling price is $835.57, which is closest to option B.

Conclusion

In this problem, we calculated the selling price of an item with a markup of 6.5% using the formula: selling price = original cost + markup value. We found that the selling price is $835.57, which is closest to option B.

Discussion

This problem requires the application of basic arithmetic operations, such as multiplication and addition, to calculate the selling price of an item with a markup. The formula used in this problem is a simple and effective way to calculate the selling price, and it can be applied to a wide range of scenarios in business and finance.

Related Topics

Calculating the selling price with a discount
Understanding the concept of markup and margin
Applying formulas to calculate business-related values

Practice Problems

Calculate the selling price of an item with an original cost of $1200 and a markup of 8%.
Calculate the selling price of an item with an original cost of $500 and a markup of 10%.
Calculate the selling price of an item with an original cost of $800 and a markup of 5%.

Answers

$1296
$550
$840
Q&A: Calculating Selling Prices with Markups =============================================

Frequently Asked Questions

Q: What is the selling price of an item with an original cost of $1000 and a markup of 15%?

A: To calculate the selling price, we need to multiply the original cost by the markup percentage and add it to the original cost.

Markup Value = Original Cost x Markup Percentage
Markup Value = $1000 x 0.15
Markup Value = $150
Selling Price = Original Cost + Markup Value
Selling Price = $1000 + $150
Selling Price = $1150

Q: How do I calculate the selling price of an item with a markup of 20% if the original cost is $800?

A: To calculate the selling price, we need to multiply the original cost by the markup percentage and add it to the original cost.

Markup Value = Original Cost x Markup Percentage
Markup Value = $800 x 0.20
Markup Value = $160
Selling Price = Original Cost + Markup Value
Selling Price = $800 + $160
Selling Price = $960

Q: What is the selling price of an item with an original cost of $600 and a markup of 12%?

A: To calculate the selling price, we need to multiply the original cost by the markup percentage and add it to the original cost.

Markup Value = Original Cost x Markup Percentage
Markup Value = $600 x 0.12
Markup Value = $72
Selling Price = Original Cost + Markup Value
Selling Price = $600 + $72
Selling Price = $672

Q: How do I calculate the selling price of an item with a markup of 25% if the original cost is $1200?

A: To calculate the selling price, we need to multiply the original cost by the markup percentage and add it to the original cost.

Markup Value = Original Cost x Markup Percentage
Markup Value = $1200 x 0.25
Markup Value = $300
Selling Price = Original Cost + Markup Value
Selling Price = $1200 + $300
Selling Price = $1500

Q: What is the selling price of an item with an original cost of $900 and a markup of 18%?

A: To calculate the selling price, we need to multiply the original cost by the markup percentage and add it to the original cost.

Markup Value = Original Cost x Markup Percentage
Markup Value = $900 x 0.18
Markup Value = $162
Selling Price = Original Cost + Markup Value
Selling Price = $900 + $162
Selling Price = $1062

Q: How do I calculate the selling price of an item with a markup of 22% if the original cost is $700?

A: To calculate the selling price, we need to multiply the original cost by the markup percentage and add it to the original cost.

Markup Value = Original Cost x Markup Percentage
Markup Value = $700 x 0.22
Markup Value = $154
Selling Price = Original Cost + Markup Value
Selling Price = $700 + $154
Selling Price = $854

Conclusion

Calculating selling prices with markups is a simple process that requires the application of basic arithmetic operations. By understanding the formula and applying it to different scenarios, you can calculate the selling price of an item with a markup. Remember to multiply the original cost by the markup percentage and add it to the original cost to find the selling price.

Related Topics

Calculating the selling price with a discount
Understanding the concept of markup and margin
Applying formulas to calculate business-related values

Practice Problems

Calculate the selling price of an item with an original cost of $1500 and a markup of 10%.
Calculate the selling price of an item with an original cost of $800 and a markup of 20%.
Calculate the selling price of an item with an original cost of $1200 and a markup of 15%.

Answers

$1650
$960
$1380