Question

Calloway department store buys jackets for $19.75 each and sells them for $37.88 each. what is the markup rate based on cost?

Answer 1

Answer : The markup rate based on cost is 91.79747%.

We have

Selling price per jacket = $37.88

Cost per jacket = $19.75

`Markup rate =[(Selling Price - Cost)/(Cost)] * 100`

Substituting the values in the formula above we get,

`Markup rate = [(37.88-19.75)/(19.75)] *100`

`Markup rate = [(18.13)/(19.75)] *100`

`Markup rate = 91.79746835`%