Future Business Leaders of America (FBLA) Business Calculations Practice Test

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Dive into the FBLA Business Calculations Test. Sharpen your analytical skills with multiple-choice questions and gain insights with detailed explanations. Excel in your exams!

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What is the maximum price a store will pay to buy a new iPhone if it wants a 45% markup based on the selling price of $600?

  1. A. $250

  2. B. $270

  3. C. $350.79

  4. D. $413.79

The correct answer is: D. $413.79

To determine the maximum price a store will pay for a new iPhone with a desired markup of 45% based on a selling price of $600, we need to understand the relationship between the cost price, selling price, and markup percentage. The selling price can be represented mathematically as the cost price plus the markup. In this case, a 45% markup means that the markup is 45% of the selling price. Therefore, we can express the cost price (C) in terms of the selling price (S) using the formula for markup: S = C + (markup percentage × S) Given that the selling price (S) is $600 and the markup percentage is 45%, we can rewrite the formula as follows: 600 = C + (0.45 × 600) First, calculate the 45% of the selling price: 0.45 × 600 = 270 Now we can plug this value back into the formula: 600 = C + 270 To isolate C, subtract 270 from both sides: C = 600 - 270 C = 330 So, the maximum price that the store will pay to buy the new iPhone, while still achieving the 45%

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