Question

ella was paid an 11 percent commission on the pair of shoes that she sold. the department store had paid $25 wholesale for the shoes and had marked up the price by 40 percent to the selling price. how much did ella earn for the sale?

$2.75
$3.85
$10.00
$12.75

Explanation:

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<reasoning>

Calculate the retail markup price

Using the Retail Markup knowledge point
\[

$$\begin{aligned} &\text{Wholesale Price} = \$25\\ &\text{Markup Rate} = 40\% = 0.40\\ &\text{Markup Amount} = 25 \times 0.40 = 10\\ &\text{Selling Price} = 25 + 10 = 35 \end{aligned}$$

\]

Calculate the commission earned

Using the Commission Calculation knowledge point
\[

$$\begin{aligned} &\text{Selling Price} = \$35\\ &\text{Commission Rate} = 11\% = 0.11\\ &\text{Commission Earned} = 35 \times 0.11 = 3.85 \end{aligned}$$

\]
</reasoning>

<answer>
<mcq-option>(A) $2.75</mcq-option>
<mcq-correct>(B) $3.85</mcq-correct>
<mcq-option>(C) $10.00</mcq-option>
<mcq-option>(D) $12.75</mcq-option>
</answer>

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Answer:

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<reasoning>

Calculate the retail markup price

Using the Retail Markup knowledge point
\[

$$\begin{aligned} &\text{Wholesale Price} = \$25\\ &\text{Markup Rate} = 40\% = 0.40\\ &\text{Markup Amount} = 25 \times 0.40 = 10\\ &\text{Selling Price} = 25 + 10 = 35 \end{aligned}$$

\]

Calculate the commission earned

Using the Commission Calculation knowledge point
\[

$$\begin{aligned} &\text{Selling Price} = \$35\\ &\text{Commission Rate} = 11\% = 0.11\\ &\text{Commission Earned} = 35 \times 0.11 = 3.85 \end{aligned}$$

\]
</reasoning>

<answer>
<mcq-option>(A) $2.75</mcq-option>
<mcq-correct>(B) $3.85</mcq-correct>
<mcq-option>(C) $10.00</mcq-option>
<mcq-option>(D) $12.75</mcq-option>
</answer>

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