The McHenry Store, a retailer of fine clothing, wants to calculate both the cost and selling price of a new suit they received from a fine clothing tailor. The amount of markup on selling price is 20%, and the amount of markup is $100. Can they calculate both the cost and the selling price of the product?
A. Definitely not; they must have more information.
B. Certainly; the selling price is $500 and the cost is $400.
C. Certainly; the selling price is $1,000 and the cost is $400.
D. Of course they can; the selling price is $500 and the cost is $200.
E. Yes; the cost is $100 and the selling price is $120.
Answer: (B) The cost is $400, and the selling price is $500. (A) is incorrect since the selling price and cost can be calculated. (C) is incorrect since Markup % on Selling Price X Selling Price = Amount of Markup. When calculated, the answer is C = $400 and SP = $500; thus, (D) is also wrong. (E) is incorrect. If the amount of markup is $100, and the markup percent on selling price is $120, this answer cannot possibly be right.