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

The markup amount is calculated by multiplying the cost price by the markup percentage (converted to a decimal). The formula is: Markup = Cost Price × Markup Percentage (in decimal).

Step2: Convert the markup percentage to decimal

The markup percentage is 65%, so in decimal form, it is \( \frac{65}{100} = 0.65 \).

Step3: Calculate the markup amount

The cost price of the lamp is $125. Using the formula from Step 1, we have: Markup = \( 125 \times 0.65 \).

Calculating this, \( 125 \times 0.65 = 81.25 \).

Answer:

A. $81.25