Question

In the following exercises, find (a) the amount of the mark-up and (b) the list price.

Daria bought a bracelet at the original cost of $16 to sell in her handicraft store. She marked the price up 45%. What was the list

price of the bracelet?

Short answer

Part (a) The mark-up amount is $7.2.

Part (b) The list price is $23.2.

Step-by-step solution

Part (a) Step 1. Given information. 

The original cost is $16 and the markup rate is 45%.

Part (a) Step 2. Find the mark-up amount.

Calculate the mark-up amount:

$$\begin{gathered} \mathrm{Mark}-\mathrm{up}\mathrm{amount}=45\%\mathrm{of}\mathrm{original}\mathrm{cost} \\ =45\%of16 \\ =0.45\times 16 \\ =7.2 \end{gathered}$$

So, the mark-up amount is $7.2.

Part (b) Step 1. Find the list price.

Calculate the list price by adding a mark-up amount to the original cost.

$$\begin{gathered} \mathrm{List}\mathrm{price}=\mathrm{original}\mathrm{cost}+\mathrm{mark}-\mathrm{up}\mathrm{amount} \\ =16+7.2 \\ =23.2 \end{gathered}$$

So, the required list price is $23.2.