Question

CHECK YOUR UNDERSTANDING

The Wacky Widget Company sells widgets for

$4.00 each wholesale. A local store has a

markup of $1.20.

A. What is the retail price?

B. What percent is the markup price?

Answer 1

Retail price = $5.20

Percentage of mark up price = 30%

Explanation:

Company sells $4.00 each wholesale.

Now the local store which is the retailer has a markup of $1.20.

This means that the retail price is;

Retail price = wholesale price + mark up = $4.00 + $1.20

Retail price = $5.20

To find the percentage of the markup, it is the fraction of the wholesale price multiplied by 100%.

Thus;

Percentage of Markup is;

1.2/4 × 100% = 30%