Question

retail prices in a department store are obtained by marking up the wholesale price by 20%. that is, retail price is obtained by adding 20% of the wholesale price to the wholesale price. (a) what is the retail price of a suit if the wholesale price is $300? (b) what is the wholesale price of a pair of jeans if the retail price is $60? (a) what is the retail price of a suit if the wholesale price is $300? the retail price is $\square.

Explanation:

Part (A)

Step1: Understand the markup formula

The retail price (R) is the wholesale price (W) plus 20% of the wholesale price. Mathematically, this can be written as \( R = W + 0.20W \) or simplified as \( R = 1.20W \).

Step2: Substitute the wholesale price

Given that the wholesale price \( W = \$300 \), we substitute this into the formula: \( R = 1.20 \times 300 \).

Step3: Calculate the retail price

\( 1.20 \times 300 = 360 \).

Step1: Use the markup formula

We know that \( R = 1.20W \), where \( R \) is the retail price and \( W \) is the wholesale price. We need to solve for \( W \) when \( R = \$60 \). So we can rewrite the formula as \( W=\frac{R}{1.20} \).

Step2: Substitute the retail price

Substitute \( R = 60 \) into the formula: \( W=\frac{60}{1.20} \).

Step3: Calculate the wholesale price

\( \frac{60}{1.20}=50 \).

Answer:

\( \$360 \)

Part (B)