Haynes Mathis
10/31/2023 · High School

Error Analysis A store is instructed by corporate headquarters to put a markup of \( 25 \% \) on all items. An item costing \( \$ 16 \) is displayed by the store manager at a selling price of \( \$ 4 \). As an employee, you notice that this selling price is incorrect. Find the correct selling price. What was the manager's likely error? The correct selling price is \( \$ \square \). (Round to the nearest dollar as needed.)

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To find the correct selling price, we need to calculate the selling price after applying the correct markup of \(25\%\) to the item's cost price. Given: - Cost price of the item = $16 - Incorrect selling price displayed by the store manager = $4 - Correct markup = 25% Let's calculate the correct selling price step by step: 1. Calculate the markup amount: Markup amount = Cost price * Markup percentage Markup amount = $16 * 25% = $4 2. Calculate the correct selling price: Correct selling price = Cost price + Markup amount Correct selling price = $16 + $4 = $20 Therefore, the correct selling price is $20. The manager's likely error was not applying the correct markup of \(25\%\) to the item's cost price.

Quick Answer

The correct selling price is $20. The manager's error was not applying the correct markup.
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