Question

A new car has a sticker price of $20,950, while the invoice price paid was $18,750. What is the percentage markup?

Answer 1

about 12% (rounded up)

Answer 2

The markup percentage is 11.73%.

Explanation:

Given,

The sticker price of car = $20,950,

While, the invoice price of car = $18,750

`\text{ Markup percentage}=\frac{\text{The sticker price of car - the invoice price of car }}{\text{The invoice price of car }}`

`=(20,950-18,750)/(18,750)* 100`

`=(220000)/(18,750)`

`=11.7333\% \approx 11.73\%`