Question
12. If the markup is 125% on a certain brand of jeans that have a wholesale price of 30.00 what will the consumer pay , if GST and PST are each 5%
Answer
4.1
(215 Votes)
Vala
Professional · Tutor for 6 years
Answer
To compute retail price which incorporates the cost of the jeans, markup and the combined GST and PST taxes, the following computation must be effected:Retail price = 30*2.25*1.10. Refrigerating this formula will yield our desired result.
Explanation
The markup on the jeans is 125% of the wholesale price. That means the total retail price will be 225% of the wholesale price, because the original 100% represents the wholesale price, and we add the 125% markup.So to calculate the retail price, multiply $30 by 2.25 (225%). When GST and PST are each 5%, we add this 10% total to the retail price. Since adding 10% is equivalent to multiplying by 1.1, we multiply the retail price by 1.1 to incorporate the tax.