Question

error analysis a store is instructed by corporate headquarters to put a markup of 11% on all items. an item costing $18 is displayed by the store manager at a selling price of $2. as an employee, you notice that this selling price is incorrect. find the correct selling price. what was the manager’s likely error? the correct selling price is $\square$. (round to the nearest dollar as needed.)

Explanation:

Step1: Understand the markup formula

The formula for selling price with markup is \( \text{Selling Price} = \text{Cost} \times (1 + \text{Markup Percentage}) \). Here, the cost is $18 and the markup percentage is 11% or 0.11.

Step2: Calculate the correct selling price

Substitute the values into the formula: \( 18\times(1 + 0.11) = 18\times1.11 \).
Calculate \( 18\times1.11 = 19.98 \), which rounds to $20.

Answer:

20