Example

Solving a Word Problem for the Mark-up and List Price of a Guitar

Apply the problem-solving strategy to find the mark-up and list price of an item given its original cost and mark-up percentage. For example, if a music store bought a guitar for an original cost of $1,200\$1{,}200 and applied a 50%50\% mark-up, first calculate the amount of mark-up by translating to an equation. The mark-up is 50%50\% of $1,200\$1{,}200, which gives the equation m=0.50×1200m = 0.50 \times 1200. Solving this yields a mark-up of $600\$600. To find the new price, substitute these values into the relationship for list price: the list price equals the original cost plus the mark-up. Translating this to an equation gives p=1200+600p = 1200 + 600, resulting in a list price of $1,800\$1{,}800.

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Updated 2026-04-22

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