Question

Solve the problem.

A store manager paid $20 for an item and set the selling price at $27.80. What was the percent markup?

41%

39%

28%

38%

Answer 1

39%

Explanation:

Let's find the answer by using the following formula:

selling price=(paid price)+((paid price)*(percent markup)) which can be written as:

percent markup=((selling price)-(paid price))/(paid price)

percent markup=(27.80-20)/20

percent markup=0.39=39%

In conclusion, the percent markup is 39%.