Pancho's Convenience Mart buys Coca-Cola in 2 liter plastic bottles for $1.00. They use a 50% markup and sell the bottles for
A) $3.00
B) $2.00
C) $1.50
D) $1.25
E) $.50
Ans: B) $2.00
The markup percentage is the percentage of the selling price that is markup. Since a $2.00 price involves $1.00 in markup - which is 50% of the selling price, then $2.00 is the selling price. Remember that the percentage markup relates to Pancho's selling price - not the Pancho's purchase price.
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