It is trying to find the markup rate of how much you are selling them for from how much they are transported. We can see that 100% of $0.95 is $0.95 itself. 50% of $0.95 is half of that so we would get $0.48 .
Now we take the difference of the price they are sold at and the price they are transported. $1.99-$0.95= $1.04. This tells us that the markup rate must be higher than 100% because the difference is more than the initial value of $0.95. Now the difference between that is $1.04-$0.95 = $0.09. We need to find the percentage of $0.09 in $0.95. 10% of $0.95 is $0.095 but $0.095 is a little greater than $0.09 so we can assume it is %9.5
We add %9.5 to %100 and get a markup of %109.5