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    smartangel88's Avatar
    smartangel88 Posts: 6, Reputation: 1
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    #1

    Feb 10, 2008, 10:27 AM
    Finance-accounting,what solution?
    If a retail jeweler sells a pair of gold earrings for $213.90. The jeweler uses a 130% markup based on cost.
    Answers:
    A. $93.00 C. $276.90
    B. $164.53 D. $278.07

    I did:
    Change 130% to 1.3 factor

    Cost x 1.3 = $213.90

    So cost = 213.90/1.3 = $164.54
    I s this correct?
    Serendipity3's Avatar
    Serendipity3 Posts: 6, Reputation: 0
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    #2

    Feb 10, 2008, 11:41 AM
    The answer is (d) 278.07

    213.90 * 1.3 = 278.07 which mean the saler will profit $64.17
    Serendipity3's Avatar
    Serendipity3 Posts: 6, Reputation: 0
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    #3

    Feb 10, 2008, 11:42 AM
    The answer is (d) 278.07

    213.90 * 1.3 = 278.07 which means the saler will profit $64.17
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #4

    Feb 10, 2008, 11:59 AM
    The original poster was correct. The 213.90 retail price is after the markup has already been applied, not before.

    This can be checked. 164.54 is the cost. A 30% markup based on cost would then be 164.54 x .30 = 49.36. And cost of 164.54 plus markup of 49.36 = 213.90, the retail price and it checks out.
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