Math Problem Statement

A store manager instructs his employees to mark up all items by 30%. A store clerk puts a price tag of $30 on an item that the store bought for $27. As an employee, you notice that this selling price is incorrect. a. Find the correct selling price. Round to the nearest dollar. b. What was the clerk’s likely error?

Solution

Let's solve the problem step by step.


Part (a): Find the correct selling price.

  • The item cost to the store is $27.
  • The markup instructed by the manager is 30%.

The formula to calculate the selling price with a markup is: Selling Price=Cost Price+(Markup Percentage×Cost Price)\text{Selling Price} = \text{Cost Price} + (\text{Markup Percentage} \times \text{Cost Price})

Substituting the values: Selling Price=27+(0.30×27)\text{Selling Price} = 27 + (0.30 \times 27)

First, calculate the markup amount: 0.30×27=8.10.30 \times 27 = 8.1

Add the markup to the cost price: 27+8.1=35.127 + 8.1 = 35.1

Rounding to the nearest dollar: Selling Price=35\text{Selling Price} = 35

Answer for (a): The correct selling price is $35.


Part (b): What was the clerk’s likely error?

The clerk priced the item at $30 instead of the correct $35. It appears the clerk might have mistakenly added a fixed dollar amount or misunderstood how to calculate a percentage markup.

One likely error is:

  • Instead of calculating 30% of $27, the clerk might have added $3, thinking this was the correct markup.

Final Answers:

  1. Correct Selling Price: $35.
  2. Clerk's Likely Error: Miscalculated the markup by adding a fixed dollar amount instead of calculating the percentage.

Do you need further clarification or detailed steps?
Here are 5 related questions you might want to explore:

  1. How can you calculate markup percentages in Excel or with a calculator?
  2. What is the difference between markup and profit margin?
  3. How would the price change if the markup was 50% instead of 30%?
  4. Can you explain how to calculate the final price after applying multiple markups?
  5. What steps can be taken to minimize pricing errors in retail settings?

Tip: Always double-check calculations when applying percentages, especially in financial or retail contexts!

Ask a new question for Free

By Image

Drop file here or Click Here to upload

Math Problem Analysis

Mathematical Concepts

Percentage Markup
Arithmetic Operations

Formulas

Selling Price = Cost Price + (Markup Percentage × Cost Price)

Theorems

-

Suitable Grade Level

Grades 6-8