If the cost is 80 and the markup is 25% of cost, what is the selling price?

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Multiple Choice

If the cost is 80 and the markup is 25% of cost, what is the selling price?

Explanation:
Markup is the extra amount added to cost to determine the selling price. Here, cost is 80 and the markup is 25% of cost, so the markup amount is 0.25 × 80 = 20. Add that to the cost to get the selling price: 80 + 20 = 100. Therefore, the selling price is 100. The option 60 would imply subtracting the markup, 80 would be no markup, and 120 would reflect a 50% markup, not 25%.

Markup is the extra amount added to cost to determine the selling price. Here, cost is 80 and the markup is 25% of cost, so the markup amount is 0.25 × 80 = 20. Add that to the cost to get the selling price: 80 + 20 = 100. Therefore, the selling price is 100. The option 60 would imply subtracting the markup, 80 would be no markup, and 120 would reflect a 50% markup, not 25%.

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