Problema Solution

the tough and tender beef restaurant marks up all dinners 22% on selling price. If the markup on pot roast is $2.629, what is the menu price?

Answer provided by our tutors

let


s = sale price or the menu price

c = cost price


Percentage Markup = (Sale price / Cost) − 1


0.22 = (Sale price / Cost) − 1


(s/c) - 1 = 0.22


Fixed Markup


Markup = Sale price − Cost


Sale price − Cost = 2.629


s - c = 2.629 => s = c + 2.629 and plug in (s/c) - 1 = 0.22


we have


(c + 2.629)/c - 1 = 0.22


by solving we find


c = $11.95 is the cost price


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s = c + 2.629 = 11.95 + 2.629 = $14.579


s = $14.579 is the sale price or the menu price.