A store is instructed by corporate headquarters to put a markup of 25% on all items. An item costing $16 is displayed by the store manager at a selling price of $4. As an employee, you notice that this selling price is incorrect. Find the correct selling price. What was the manager's likely error?

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Find out  the selling price.

To prove

As given

A store manager instructs his employees to mark up all the items by 25%. An item that the store bought for $16.

25% is written in the decimal form.

= 0.25

25% of the $16= 0.25 × 16

                         = $4

Selling price of the item = Original price of item + 25% of the $16

                                       = $16 + $4

                                      = $ 20

Therefore the selling price of the item is $20.

Step-by-step explanation:

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