Question

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

Flora paid her supplier $0.74 a stem for roses to sell at her flower shop. She added an 85% mark-up.

What price did she charge her

customers for the roses?

Short answer

Part (a) The mark-up amount is $0.629.

Part (b) The list price is $1.369.

Step-by-step solution

Part (a) Step 1. Given information.

The original cost is $0.74 and the mark-up rate is 85%.

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

Calculate the markup amount:

$$\begin{gathered} Mark-upamount=85\%oforiginal\cos t \\ =85\%of0.74 \\ =0.85\times 0.74 \\ =0.629 \end{gathered}$$

So, the mark-up amount is $0.629.

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

Calculate list price by adding markup amount to original cost:

$$\begin{gathered} \mathrm{List}\mathrm{price}=\mathrm{original}\mathrm{cost}+\mathrm{mark}-\mathrm{up}\mathrm{amount} \\ =0.74+0.629 \\ =1.369 \end{gathered}$$

So, the list price is $1.369.