NavGanitMateby NavGreen Compute, AustraliaBased on Australian Curriculum: Mathematics v9.0
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Percentages and financial modelling

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A retailer buys a batch of 120 smartphones for a total of $72,000. They plan to sell each smartphone at a 25% markup on the cost price.

What is the exact total selling price for all 120 smartphones?

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Explanation

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Worked solution

  1. The retailer buys 120 smartphones for a total of $72,000. The cost price per smartphone is calculated by dividing the total cost by the number of smartphones: $72,000 ÷ 120.
  2. Perform the division: $72,000 ÷ 120 = $600. This is the cost price per smartphone.
  3. The retailer applies a 25% markup on the cost price. To find the markup amount, convert 25% to a decimal by dividing by 100: 25 ÷ 100 = 0.25. Then multiply the cost price by 0.25: $600 × 0.25 = $150.
  4. Add the markup to the cost price to get the selling price per smartphone: $600 + $150 = $750.
  5. Multiply the selling price per smartphone by the total number of smartphones to find the total selling price: $750 × 120.
  6. Perform the multiplication: $750 × 120 = $90,000. This is the total selling price for all 120 smartphones.
  7. Check: 120 × $750 = $90,000. The calculation is consistent and correct.

Reference answer: 90000

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