You are buying and reselling items found at your local thrift shop. You found an antique pitcher for sale. If you need a 22% markup on cost and know most people will not pay more than $17 for it, what is the most you can pay for the pitcher?

Question

Business

London Wilkins

5 February, 15:58

You are buying and reselling items found at your local thrift shop. You found an antique pitcher for sale. If you need a 22% markup on cost and know most people will not pay more than $17 for it, what is the most you can pay for the pitcher?

+2

Answers (1)

Know the Answer?

Davin Andersen · Answer 1

The maximum amount that could be paid for the antique pitcher is $13.93 as shown by the workings in the explanation section below.

Explanation:

Since the maximum price that could be charged for the antique pitcher is $17, the most that could be paid in purchasing it, is given by the below formula:

selling price * 100% / (100% + Markup%)

=$17*100% / (100%+22%)

=$13.93

From the foregoing analysis, the markup in dollar terms is $17-$13.93=$3.07 which represents 22% of the cost price of the antique pitcher.