The cost of an office chair is $159 and the markup rate is 24% of the cost. What is A. the dollar markup and B. the selling price?

Answer: A. $38.16 B. $197.16 Step-by-step explanation:

A. The dollar amout of the markup is found by multiplying the markup rate by the dollar cost. "24% of cost" means "24% * cost". Of course, you know that 24% = 24/100 = 0.24.

... markup = 0.24 * cost = 0.24 * $159 = $38.16

B. The markup is the amount added to the cost to get the selling price. It is the amount by which the cost is marked up.

... selling price = cost + markup = $159.00 + 38.16 = $197.16