A store owner pays $400 for a chair. He marks the price of the chair up by 60%. What is the new selling price of the chair after the 60% markup?
A. $640
B. $800
C. $450
D. $550
E. $600
Answer: (A) is the correct choice. If the cost of the chair is $400, and the markup percent is 60%, then the new selling price of the chair after markup is $640. $400 x .60 = $240 . Adding $240 to the original selling price ($400 + $240 = $640) shows the correct answer to be (A). Thus, (B), (C), (D), and (E) are incorrect.