Question

Journey's the shoe store has a cost of goods sold of $22.00 on classic Converse Chuck Taylor sneakers. The corporate office mandates that each store must have a 30% markup on each shoe. What is the final retail price of the sneakers for Journey's?

Answer 1

Answer:

Explanation:

Firs, find the markup amount in dollars;

Markup amount = Cost * markup rate

Cost = $22

markup rate = 30% or 0.30 as a decimal

Markup amount = 0.30*22 = $6.6

Next, find the retail price using the markup amount calculated above;

Retail Price = Markup amount + cost

Retail price = $6.6 +$22

= $28.6

Therefore, the sneakers retail price is $28.6