In: Accounting
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.
$
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 |