Sure, let's break this down step-by-step to determine the markup amount and the selling price for the suit that costs \[tex]$120.00 and has a markup of 50% on cost.
1. Understand Markup Percentage:
- The suit has a markup of 50%. The percentage markup means we need to calculate an additional 50% of the cost price to determine the markup amount.
2. Calculate the Markup Amount (M):
- To find the markup amount, we take 50% of the cost price of \$[/tex]120.00.
- Markup amount, [tex]\( M = \)[/tex] Cost Price [tex]\(\times \)[/tex] Markup Percentage
- [tex]\( M = 120.00 \times 0.50 \)[/tex]
- So, [tex]\( M = 60.00 \)[/tex]
3. Calculate the Selling Price (S):
- The selling price is the sum of the cost price and the markup amount.
- Selling Price, [tex]\( S = \)[/tex] Cost Price [tex]\( + \)[/tex] Markup Amount
- [tex]\( S = 120.00 + 60.00 \)[/tex]
- So, [tex]\( S = 180.00 \)[/tex]
4. Rounding to the Nearest Cent:
- Both the markup amount and the selling price should be rounded to the nearest cent. In this case, they are already in the correct format.
So, the rounded answers are:
- The markup amount, [tex]\( M = \)[/tex] \[tex]$60.00
- The selling price, \( S = \) \$[/tex]180.00
