Practice!

Sample Problem

The cost of manufacturing a bicycle is $50. The manufacturer sells the bicycles to its distributor at a profit of 25%. The distributor sells them on the market making a 15% gain. What is the marketing price of the bicycle? (If necessary, round your answer to the nearest cent)

dollars

Solution

Marketing price = cost × (100% + percentage of profit) × (100% + percentage of gain)

Marketing price = $50 × (100% + 25%) × (100% + 15%) = $71.88

So the answer is $71.88.