Question

Find ⓐ the amount of mark-up and ⓑ the list price.

Jim’s music store bought a guitar at original cost $$1200$. Jim marked the price up $50$%.

Short answer

If Jim’s music store bought a guitar at original cost $$1200$and Jim marked the price up $50$% then

(a) The amount of markup on the guitar was $$600$.

(b) The list price of the guitar is $$1800$

Step-by-step solution

Step 1. Given information 

Original price$=\$1200$

Mark up rate$=50\%$

Step 2. Part (a)  

Consider the amount of markup ism

The amount of markup is $50$% of the original price $$1200$

$$\begin{gathered} m=\left(0.50\right)\left(1200\right) \\ m=600 \end{gathered}$$

So the amount of markup on the guitar was $$600$.

Step 3. Part (b)  

Consider the list price is p

The list price is the sum of the original price $$1200$and the amount of markup $$600$

role="math" localid="1647130380401" $$\begin{gathered} p=1200+600 \\ p=1800 \end{gathered}$$

So the list price of the guitar is $$1800$.