We have been given that a store manager paid $95 for an item and set the selling price at $116.85. We are asked to find the percent mark-up.
We will use percent increase formula to solve our given problem.
[tex]\text{Percent increase}=\frac{\text{Final}-\text{Initial}}{\text{Initial}}\times 100\%[/tex]
[tex]\text{Percent increase}=\frac{\$116.85-\$95}{\$95}\times 100\%[/tex]
[tex]\text{Percent increase}=\frac{\$21.85}{\$95}\times 100\%[/tex]
[tex]\text{Percent increase}=0.23\times 100\%[/tex]
[tex]\text{Percent increase}=23\%[/tex]
Therefore, the mark-up will be 23% and option 'b' is the correct choice.
