A retailer bought a shirt at wholesale and marked it up 80% to its initial retail price of $45. By how many more dollars does he need to increase the price to achieve a 100% markup?
1
2
3
4
5
An alternate approach is to PLUG IN THE ANSWERS.
Initial markup = 80% = 4/
5.
Implication of the denominator in red:
All of the prices in the problem are almost certainly divisible by 5.
The answer choices imply the following options for the selling price after a 100% markup:
45+1 = 46
45+2 = 47
45+3 = 48
45+4 = 49
45+5 = 50.
Only E yields a multiple of 5.
Since the price after a 100% markup is DOUBLE the wholesale price, E implies a wholesale price of $25.
If E is correct, adding 80% to the wholesale price will yield a selling price of $45:
25 + (4/5)(25) = 45.
Success!
The correct answer is
E.
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