Keeley ordered 240 T-shirts to sell at the school carnival. She paid $3.20
per shirt, plus 5% of the total order for shipping. When she sells each T-
shirt at the carnival, she adds a 150% markup to the total price she paid for
the shirt (including the cost of shipping). What is the selling price of each T-
shirt?

Answer:

We have 200 shirts

Cost $2.80 each

plus a 5% charge for shipping.

Selling price

150% markup

Recall when we use percentages, we need to express them as decimals.

Michelle's cost for each shirt was

2.80 (1.05) = 2.94

The markup is

2.94 (1.50) = 4.41

The markup is added to the cost to get the final selling price.

2.94 + 4.41 = $7.35

Michelle will sell each shirt for $7.35.

Let’s reword the question to make it simpler to understand:

Keeley pays $3.20 per shirt + 5% for shipping.

She sells them at the carnival for 150% the price she paid.

First of all we should work out how much the 5% shipping cost Keeley.

If the shirts are $3.20 that means 10% is $0.32, to get 5% we divide that by 2. This means 5% is $0.16, therefore shipping is $0.16.

The total price Keeley pays per shirt is $3.20 + $0.16 = $3.36.

Now let’s find out 10% of $3.36, which is $0.336, then multiply that by 15 to get 150%:

5.04

Therefore Keeley sells each shirt for $5.04

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