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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%

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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%

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%

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ValaProfessional · 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:<br />Retail price = 30*2.25*1.10. Refrigerating this formula will yield our desired result.

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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.<br /><br />So to calculate the retail price, multiply $30 by 2.25 (225%). <br /><br />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.
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