Question

Cheryl bought handbags for $50 each from a discount store, then adds a 40% markup before reselling them.

Answer 1

$70

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To calculate the selling price after a 40% markup, we first determine the markup amount by multiplying the cost price by the markup percentage.

In this case, Cheryl buys handbags for $50 each, so the markup amount is:

• 0.40 × $50 = $20

Adding the markup to the cost price gives us the selling price, which is:

• $50 + $20 = $70 per handbag

Therefore, with a 40% markup, Cheryl resells each handbag for $70.