Bari Jay, a gown manufacturer, received an order for prom dresses from China. Her cost is $45 a gown. If her markup based on selling price is 69%, what is the selling price of each gown?

(Round your answer to the nearest cent.)

The answer is: The selling price is $76.05

Explanation:

To calculate the markup we can use the following formula:

Markup Percentage = Gross Profit / Unit Cost

where:

unit cost = $45 markup percentage = 69% gross profit = selling price - unit cost

69% = gross profit / $45

69% x $45 = gross profit

$31.05 = gross profit

$31.05 = selling price - $45

selling price = $76.05