Question

percent increase
a furniture store purchases a lamp for $125. the store needs a 65% markup on cost.
part 1: what is the increase in the cost of the lamp after the markup?
a $81.25
b $73.55
c $65.00
d $43.75

Explanation:

Step1: Identify the formula for markup increase

The increase due to markup is calculated by finding a percentage of the original cost. The formula is: Increase = Original Cost × Markup Percentage.
Here, the original cost is $125 and the markup percentage is 65% (or 0.65 in decimal form).

Step2: Calculate the increase

Using the formula, we substitute the values: Increase = \( 125 \times 0.65 \)
Calculating this, \( 125 \times 0.65 = 81.25 \)

Answer:

A. $81.25