Question

Nakesha’s Sporting Goods is running a sale on golf shoes this week. The sale price is $95.98. The shoes cost Nakesha’s $63.45. What is the markup rate based on cost?

Answer 1

Markup rate = 0.512 or 51.2%

Explanation:

Mark up rate is the increase amount added to the original price.

Sales Price = $95.98

Original Price= $63.45

Gross profit margin = Sales Price - Original cost

= $95.98 - $63.45

= $ 32.53

Mark up Rate = Gross profit margin/ original price

= 32.53 / 63. 45

= 0.51

converting into percentage by multiplying with 100

Mark up Percentage = 0.512 * 100

= 51.2 %