A store has a markup rate of 120% on the cost of their watches. They sell each watch for

$205.

a. Calculate the amount the store paid for each watch.

Round to the nearest cent

b. Calculate the amount of markup on each watch.

Round to the nearest cent Use python 

To solve the problem, we first need to determine the cost price and the markup amount for each watch:

### a. Calculate the amount the store paid for each watch:

Given:
- **Selling price (S)** = $205
- **Markup rate** = 120%

The formula to find the cost price ($C$) when the markup rate is given is:

\[
C = \frac{S}{1 + \text{Markup Rate}}
\]

Substituting the given values:

\[
C = \frac{205}{1 + 1.2} = \frac{205}{2.2} \approx 93.18
\]

Therefore, the store paid **$93.18** for each watch.

### b. Calculate the amount of markup on each watch:

The markup amount is the difference between the selling price and the cost price:

\[
\text{Markup Amount} = S - C = 205 - 93.18 = 111.82
\]

Therefore, the markup amount on each watch is **$111.82**.

### Summary:

- **Cost price of each watch:** $93.18
- **Markup amount on each watch:** $111.82

Do you want more details or have any questions? Here are some related questions you might find interesting:

1. How does the markup rate affect the selling price of an item?
2. What would be the selling price if the markup rate was 150%?
3. How do you calculate the cost price if you only know the selling price and markup amount?
4. What is the formula to determine the selling price if the cost price and markup rate are known?
5. How would a discount on the selling price affect the markup amount?
6. How do you calculate the percentage increase from the cost price to the selling price?
7. If the markup rate is 200%, what is the cost price of a product sold for $300?
8. How do different industries typically determine appropriate markup rates?

**Tip:** Always ensure that the markup rate is correctly converted to a decimal before using it in calculations.

Learn how to calculate the cost price and markup amount of watches sold at a store with a markup rate of 120%. Detailed step-by-step solution with rounding to the nearest cent. Suitable for high school students.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation