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Original price: $36; Markup: 5% The retail price is ?

Answer :

EXPLANATION

If the original price is $36 and the markup is 5%, we need to add the markup.

We can get this multiplying the original price by the following formula:

[tex]\text{Markup \%=}\frac{\text{Selling price-Cost}}{\text{Cost}}\cdot100[/tex]

Replacing terms:

[tex]\frac{5}{100}=\frac{\text{markup}-36}{36}[/tex]

Multiplying both sides by 36:

[tex]\frac{5}{100}\cdot36=\text{markup}-36[/tex]

Adding 36 to both sides:

[tex]\frac{5}{100}\cdot36+36=\text{markup}[/tex]

Computing terms:

[tex]\text{1}.8+36=\text{markup}[/tex]

Adding terms:

[tex]37.8=\text{markup}[/tex]

The retail price is $37.8