Question

A beauty salon buys bottles of gel for \[\$ 4.50\] and marks up the price by \[40\% \]. For what price do they sell each bottle?

Answer 1

Hint: We have to find the price in which the beauty salon sells each bottle of gel. Given that the price is marked up by \[40\% \] and the cost price of the bottles is \[\$ 4.50\]. Using this we will find the price markup by finding \[40\% \] of \[\$ 4.50\]. Then we will add this amount to the cost price to find the price in which they sell each bottle.

Complete step-by-step solution:
Markup price is the additional price or profit earned by the seller over and above the cost price of the product or service.
Markup percentage is a percentage markup over the cost price of a product to determine the selling price of a product.
Given that a beauty salon buys bottles of gel for \[\$ 4.50\] and marks up the price by \[40\% \].
Therefore, \[{\text{Markup}} = \dfrac{{40}}{{100}} \times \$ 4.50\]
On simplification we get,
\[ \Rightarrow {\text{Markup}} = \$ 1.80\]
Therefore, the beauty salon buys bottles of gel for \[\$ 4.50\] and marks up the price by \[40\% \] i.e., \[\$ 1.80\].
So, the selling price will be equal to addition of cost price and markup i.e.,
\[ \Rightarrow {\text{Selling price}} = \$ 4.50 + \$ 1.80\]
On simplification we get,
\[ \Rightarrow {\text{Selling price}} = \$ 6.30\]
Therefore, they sell each bottle for \[\$ 6.30\].

Note: Markup pricing is the method of adding a certain percentage of markup to the cost price of the product in order to estimate the selling price of a product. Markup price is also defined as the difference between average selling price per unit and the average cost price per product.