Question

A store is instructed by corporate headquarters to put a markup of 11​% on all items. An item costing ​$27 is displayed by the store manager at a selling price of ​$3. As an​ employee, you notice that this selling price is incorrect. Find the correct selling price. What was the​ manager's likely​ error?

Answer 1

Answer: The correct selling price is $29.97.

Step-by-step explanation:

Since we have given that

Cost price of an item = $27

Mark up rate = 11%

So, Amount of mark up would be

$\dfrac{11}{100}\times 27\\\\=\ 2.97$

So, Amount after mark up would be

$\ 27+\ 2.97\\\\=\ 29.97$

Hence, the correct selling price is $29.97.

The manager's likely error is that he has put the selling price the mark up amount only i.e $2.9≈$3 instead of adding the mark up amount to the cost price.