1. **State the problem:** Rita's music store bought a guitar at a wholesale price of $600 and marked it up by 40%. We need to find: a) The markup amount. b) The list price. 2. **Formula and explanation:** - Markup amount is calculated as: $$\text{Markup Amount} = \text{Wholesale Price} \times \frac{\text{Markup Percentage}}{100}$$ - List price is the sum of the wholesale price and the markup amount: $$\text{List Price} = \text{Wholesale Price} + \text{Markup Amount}$$ 3. **Calculate the markup amount:** $$\text{Markup Amount} = 600 \times \frac{40}{100} = 600 \times 0.40 = 240$$ 4. **Calculate the list price:** $$\text{List Price} = 600 + 240 = 840$$ 5. **Final answers:** - Markup amount is $240. - List price is $840.