Quantitative Literacy Practice Exam 2026 – Comprehensive Preparation Guide

Question: 1 / 400

What is the selling price of an item that costs $120 and has a markup of 25%?

$150

To find the selling price of an item based on its cost and markup percentage, you first need to understand how to calculate the markup amount and then add it to the original cost.

In this case, the original cost of the item is $120, and the markup is 25%. To calculate the markup amount, you can use the following formula:

Markup Amount = Cost × (Markup Percentage)

Substituting in the values from the question:

Markup Amount = $120 × 0.25 = $30

Now that you have the markup amount, you can determine the selling price by adding the markup to the original cost:

Selling Price = Cost + Markup Amount

So, in this situation:

Selling Price = $120 + $30 = $150

Thus, the selling price of the item is indeed $150, which corresponds to the correct answer. This approach effectively uses the concepts of cost and percentage markup to arrive at the final selling price.

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$140

$130

$160

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