The problem involves calculating the final selling price of a bottle of lotion based on successive markups. Let's break this down step by step:

1. Initial cost: $12.50 per bottle.

2. First markup (35%):

   • Calculate 35% of $12.50: $12.50 \times 0.35 = 4.375$
   • Add this markup to the initial cost: $12.50 + 4.375 = 16.875$

3. Second markup (10%):

   • Calculate 10% of $16.875: $16.875 \times 0.10 = 1.6875$
   • Add this markup to the new price: $16.875 + 1.6875 = 18.5625$

Final selling price: $18.56 (rounded to two decimal places).

Let me know if you need further clarification or a breakdown! Here are some related questions:

1. What would the selling price be if the second markup was 15% instead of 10%?
2. How would the final price change if the first markup was reduced to 25%?
3. What is the percentage increase from the original cost to the final price?
4. How would the calculations change if the cost price of the lotion was $15.00 instead?
5. Can this markup process be simplified into a single step using compound percentages?

Tip: When calculating successive markups, you can also use compound multiplication for efficiency. For example, $12.50 \times 1.35 \times 1.10$.