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French Company marks up its good 45% on cost. What is French's equivalent markup on selling price?

User Zoli
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French company marks 45% on the cost and we are supposed to find the equivalent markup on the selling price. The relation between the cost rate and the markup on the retail price can be combined as:

1/mr = 1/mc +1

where mr is the retail price; and

mc is the cost rate.

Retail price is same as the selling price so

1/mr = 1/0.45 + 1

1/mr = 3.222

so, mr = 1/3.222

therefore, equivalent markup on selling price = 0.310


User Mentat
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