Calculating Price Using a Markup Percentage of Cost Lake McDonald Gift Shop has decided to price...

Calculating Price Using a Markup Percentage of Cost

Lake McDonald Gift Shop has decided to price the games that it sells at cost plus 60%. The National Parks Memory Card Game costs $15.00 each, and another one, the Guess This Animal Track Game, costs $1.50 each.

Required:

1. What price will Lake McDonald Gift Shop charge for each National Parks Memory Card Game? If required, round your answer to two decimal places.
$

2. What price will Lake McDonald Gift Shop charge for each Guess This Animal Track Game? If required, round your answer to two decimal places.
$

Expert Solution

Answer:

a)

Price   = Cost + Mark Up
             =   $15 +   ($15 x 60%)
            =     $15 + $9
            =    $25

Lake McDonald Gift Shop charge for each National Parks Memory Card Game = $25

b)

Price   = Cost + Mark Up
             =   $1.50 +   ($1.50 x 60%)
            =     $1.50 + $0.90
            =    $2.40

Lake McDonald Gift Shop charge for each Guess This Animal Track Game = $2.40

ekkarill92 answered 2 years ago

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