Question: 1. The markup on a bicycle in a sporting goods store is 125%. The bicycle’s wholesale price is…

1. The markup on a bicycle in a sporting goods store is 125%. The bicycle’s wholesale price is $450.00. What is the markup in dollars?

Solution

First, convert the markup percentage to a decimal. \[ 125\% = 1.25 & \] Next, multiply the wholesale price by the markup decimal to find the markup in dollars. \[ 450 \times 1.25 = 562.50 & \] Therefore, the markup is \$562.50.