1- a software buyer is looking for a product to retail for $230. he wants to apply a markup 38%( based on selling price)to the product. allowing for this markup,what is the maximum amount the buyer can pay for the software.
2- a retail jeweler sells a pair of gold earrings for $213.90. the jeweler uses a 130% markup based on cost. based on this information ,what was the wholesale cost of the earrins.
please do not just give me answer,explain also.
many many thanks in advance.
2006-11-09 06:27:49 · 2 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
1. 138/100 (x) = 230
2. 130/100 (x) = 213.90
2006-11-09 06:31:00 · answer #1 · answered by a_blue_grey_mist 7 · 0⤊ 0⤋
230/1.38 (230 is 138% of the buyer's purchase price)
= $166.66 max purchase price
213.90/1.3 (213.90 is 130% of the wholesale cost)
= 164.54
You can check this by doing it backwards -
166.66 x 138% (or 1.38) = 229.99
164.54 x 130% (or 1.30) = 213.90
Since you multiply the wholesale cost ($166.66) by the markup % (138%) to get your sale price ($230), you would divide the sale price by the % to find the wholesale cost.
WC x % = SC
Do some algebra and divide both sides by %
WC = SC / %
2006-11-09 06:38:59 · answer #2 · answered by Phoenix, Wise Guru 7 · 0⤊ 0⤋