Question

1. Clyde has the chance to buy a piece of old Pennsylvania Dutch pottery that he thinks he can resell for $500. If Clyde needs a 125% markup on cost, what price should he pay?

2. Orchard Supply sells lawn fertilizer at a price of $12.50 per bag. If the markup is 25% of cost, find the cost.

Answer 1

1. cost +1.25*cost = 500
2.25*cost = 500
cost = 500/2.25 = 222.22

Clyde should pay $222.22 or less for the pottery.


2. cost +0.25*cost = $12.50
1.25*cost = $12.50
cost = $12.50/1.25 = $10.00

The cost to Orchard Supply of a bag of fertilizer is $10.00.