The markup on a new van should be 30% based on selling price. If the seller paid $25,550 for one, then how much should it be sold for to achieve the desired markup?
A) $26,122.50
B) $36,500.00
C) $45,255.71
D) $28,536.25

Question

Quizplus · Accepted Answer

The markup is based on the selling price, so if the markup is 30%, the cost represents 70% (100% - 30%) of the selling price. Therefore, $25,550 = 70% of the selling price. To find the selling price, divide $25,550 by 0.70, which equals $36,500.

The Markup on a New Van Should Be 30% Based