The markup on a home spa should be 20% based on selling price. If the seller paid $5,900 for one, then how much should it be sold for to achieve the desired markup?
A) $7,375.00
B) $6,333.33
C) $6,170.00
D) $8,330.34

Question

Quizplus · Accepted Answer

To achieve a 20% markup based on the selling price, you can use the formula: Selling Price = Cost / (1 - Markup Percentage). Here, the cost is $5,900 and the markup percentage is 20% or 0.20. So, the selling price = $5,900 / (1 - 0.20) = $5,900 / 0.80 = $7,375.

The Markup on a Home Spa Should Be 20% Based