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A music store buys a guitar at a wholesale price of $1,200 and marks the price up 50%. What is the list price of the guitar?

A$600
B$1,250
C$1,800
D$2,400
Answer & Solution
Correct answer: C. $1,800
1. First find the amount of mark-up: change 50% to a decimal, 0.50. 2. Multiply: 0.50 x 1,200 = 600, so the mark-up is $600. 3. The list price equals the wholesale price plus the mark-up. 4. Add: 1,200 + 600 = 1,800, so the guitar lists for $1,800. 5. $600 alone is just the mark-up, and $2,400 doubles the wholesale price, which would be a 100% mark-up rather than 50%. _Source: OpenStax Prealgebra (CC BY 4.0), Ch 6 "Percents", section 6.3 Solve Sales Tax, Commission, and Discount Applications_
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