82.9k views
4 votes
Fonterra charges a 40% markup on milk supplies for dairy stores. A grocery store charges a 25% markup on milk bought from Fonterra. How much, in percentage, has the original price been increased?

User BDRSuite
by
6.9k points

1 Answer

4 votes

Answer:

It receives a markup for 75% above the original price.

Step-by-step explanation:

From the dairy store we must multiply the fonterra markup and the grocery store markup as the grocery store do not know the dairy price It mperforms his markup from Fonterra's prices.

dairy stores x ( 1 + 40% ( 1 + 25%) = final consumer selling price

dairy stores x (1 + 75% ) = final consumer selling price

User Xxddoo
by
7.1k points