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Difficulty: EasyPercentage Change, Markups, and Discounts

A grocery store purchases bags of coffee beans from a supplier at a wholesale cost of $40\$40 per bag. The store applies a 25%25\% markup to the wholesale cost to determine the retail price. What is the retail price of one bag of coffee beans?

  1. $50\$50Answer
  2. B
    $65\$65
  3. C
    $10\$10
  4. D
    $41\$41

Answer

The retail price of one bag of coffee beans is $50\$50.
To find the retail price, first determine the markup amount by calculating 25%25\% of $40\$40. Since 25%25\% is equivalent to the fraction 14\frac{1}{4} or the decimal 0.250.25, multiplying 40×0.2540 \times 0.25 equals $10\$10. Add this $10\$10 markup to the original $40\$40 wholesale cost to get the final retail price of $50\$50.

Step-by-Step Solution

1
Calculate the dollar amount of the markup by finding 25%25\% of $40\$40.
0.25×40=100.25 \times 40 = 10
The markup percentage must be converted to a dollar amount before it can be added to the cost.
2
Add the markup amount to the original wholesale cost.
40+10=5040 + 10 = 50
The retail price is the sum of the wholesale cost and the markup.

Key Concept

Calculating a markup by finding a percentage of a base value and adding it to the original amount.
Estimated Time:45s
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Topics

Percentage Change, Markups, and Discounts

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