We know that Fashion Fun uses a mark-up of 285%. To determine the sell price in Sally's store we can use the rule of three.
[tex]\begin{gathered} 4.5\rightarrow100 \\ x\rightarrow285 \end{gathered}[/tex]
Then, the sell price is
[tex]\begin{gathered} x=\frac{285\cdot4.5}{100} \\ =\frac{1285.5}{100} \\ =12.86 \end{gathered}[/tex]
The sell price in Fashion Fun is 12.86.
The mark-up amount is the sell price minus the purchased price, then
[tex]12.86-4.5=8.36[/tex]
Therefore the mark-up amoun is $8.36. Furthermore this is also the profit Sally will have if she sells the dress in this price.
If Sally doesn't sell the dress in this price she should make a discount in the price.
