Find the markup on the following item:

A necktie costs [tex]$30.00 per dozen and sells for $[/tex]5 each.

(Be careful—find the cost of one tie before you subtract.)



Answer :

To find the markup on the necktie, let's break down the steps in detail:

1. Determine the cost of one necktie:
- A dozen neckties cost [tex]$30.00. - There are 12 neckties in a dozen. - To find the cost of one necktie, divide the total cost by the number of neckties: \[ \text{Cost per necktie} = \frac{\text{Total cost per dozen}}{\text{Number of neckties in a dozen}} = \frac{30.00}{12} \] \[ \text{Cost per necktie} = 2.50 \] So, the cost of one necktie is $[/tex]2.50.

2. Identify the selling price of one necktie:
- The selling price of one necktie is given as [tex]$5.00. 3. Calculate the markup: - The markup is the difference between the selling price and the cost price. - Subtract the cost price of one necktie from the selling price: \[ \text{Markup per necktie} = \text{Selling price per necktie} - \text{Cost per necktie} \] \[ \text{Markup per necktie} = 5.00 - 2.50 \] \[ \text{Markup per necktie} = 2.50 \] Thus, the markup on one necktie is $[/tex]2.50.

In summary, the necktie costing [tex]$30.00 per dozen has an individual cost of $[/tex]2.50 per tie, sells for [tex]$5.00 per tie, and the markup per tie is $[/tex]2.50.