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.)
UpStudy ThothAI Solution
Tutor-Verified Answer
Step-by-step Solution
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.
Answered by UpStudy AI and reviewed by a Professional Tutor
UpStudy ThothAI
Self-Developed and Ever-Improving
Thoth AI product is constantly being upgraded and optimized.
Covers All Major Subjects
Capable of handling homework in math, chemistry, biology, physics, and more.
Instant and Accurate
Provides immediate and precise solutions and guidance.
Try Now
Ask Tutors
Ask AI
10x
Fastest way to Get Answers & Solutions
By text
Enter your question here…
By image
Re-Upload
Submit