A component costs $1,200; it's marked up 18% wholesale, then 25% above that for retail. What is the final price?

A component costs $1,200; it's marked up 18% wholesale, then 25% above that for retail. What is the final price?

• A. $1,575
• B. $1,770
• C. $1,680
• D. $1,785

Answer: (B)

To find the final price of the component after the successive markups, follow these steps: 1. **Calculate the wholesale price after the initial markup of 18%**. Start by determining what 18% of $1,200 is: \[ 18\% \text{ of } 1,200 = 0.18 \times 1,200 = 216 \] Then add this to the original cost: \[ \text{Wholesale price} = 1,200 + 216 = 1,416 \] 2. **Now, calculate the retail price with a 25% markup on the wholesale price**. First, find 25% of $1,416: \[ 25\% \text{ of } 1,416 = 0.25 \times 1,416 = 354 \] Then add this amount to the wholesale price: \[ \text{Retail price} = 1,416 + 354 = 1,770 \] Thus, the final retail price of the component is $1,770, making this the correct answer. The process reflects the

To find the final price of the component after the successive markups, follow these steps:

1. Calculate the wholesale price after the initial markup of 18%. Start by determining what 18% of $1,200 is:

[

18% \text{ of } 1,200 = 0.18 \times 1,200 = 216

]

Then add this to the original cost:

[

\text{Wholesale price} = 1,200 + 216 = 1,416

]

2. Now, calculate the retail price with a 25% markup on the wholesale price. First, find 25% of $1,416:

[

25% \text{ of } 1,416 = 0.25 \times 1,416 = 354

]

Then add this amount to the wholesale price:

[

\text{Retail price} = 1,416 + 354 = 1,770

]

Thus, the final retail price of the component is $1,770, making this the correct answer. The process reflects the