Expert: Sherry Wallin - 8/23/2009

Question
Business- Markup policy.  A clothing store sells a shirt costing $20 for $33 and a jacket costing $60 for 93.  A.  If the markup policy of the store is assumed to be linear, write and equation that expresses retail price R in terms of cost C ( wholesale price).  B.  What does a store pay for a suit that retails for $240?

Answer
Joy this is an elementary algebra problem. You are given two sets of points, with the retail price and cost. (33,20) and (93,60). Find the slope and use the point-slope formula of a line:
m = (60-20)/(93-33) = 40/60 = 2/3
C-20 = (2/3)(R-33) -> C-20 = (2/3)R -22 or C = (2/3)R -2
so when the retail price is $240 the cost becomes: C = (2/3)240 -2 -> C = $158.The store pays $158 for a suit they sell for $240

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