Question

You sell an automobile part for $9.98, which includes a $.40 sales tax. The article cost you $8.75.

What percentage markup are you charging (to the nearest tenth)?

Answer 1

9.5%

Explanation:

Buying price of the part= $ 8.75

Selling price of the part= $ 9.98

sale tax= $0.40

Selling price before sale tax= $9.98-$ 0.40 = $ 9.58

Make-up amount charged= $9.58- $8.75 = $ 0.83

As a percentage= (0.83/ 8.75) ×100

=9.5%