Multiple Choice
Which term refers to the total revenue from sales after deducting sales returns, allowances, and discounts?
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4. Merchandising Operations
Net Sales
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A book with a base price of $15.75 is marked up by 65%. What is the new price of the book?
A
$25.99
B
$18.75
C
$23.50
D
$15.75
Verified step by step guidance1
Step 1: Understand the problem. The base price of the book is $15.75, and it is marked up by 65%. To find the new price, you need to calculate the markup amount and add it to the base price.
Step 2: Calculate the markup amount. Multiply the base price by the markup percentage (65%). Use the formula: Markup Amount = Base Price × Markup Percentage. In MathML:
Step 3: Add the markup amount to the base price to find the new price. Use the formula: New Price = Base Price + Markup Amount. In MathML:
Step 4: Ensure the calculations are accurate by double-checking the multiplication and addition steps.
Step 5: Compare the calculated new price to the provided options ($25.99, $18.75, $23.50, $15.75) to identify the correct answer.
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