Tutorial Exercise

The markup on a TV should be $53\%$ based on selling price. If the seller paid $$188$ for one, then how much should it be sold for to achieve the desired markup?

Step $1$

Recall the formula below to calculate the selling price a customer pays SP of an item given the price paid by the seller $C$ and the percent markup based on the selling price $\%M_{S{P}^{**}}$

$SP=\frac{C}{100\%-\%M_{SP}}$

The percentages must be converted to decimal form before this formula can be used. The seller uses a markup of $53\%$ based on the selling price so the amount paid by the seller, C$,$ will be divided by $100\%-53\%=47\%.$ Converting this percent to a decimal gives $400$

$0\mathrm{.}470\mathrm{.}47$

Step $2$

The seller paid $$188$ for the TV$.$ We determined that as a decimal, $100\%-\%M_{SP}=0\mathrm{.}47.$ Substitute these values into the equation to find the selling price for the TV $($in $ $).$

$SP=\frac{C}{100\%-\%M_{SP}}$

$=,188$

$=$$