Question

Markup = original cost × percentage markup

A car seller buys a car from a manufacturer for $8,000. He increases the cost by 6 percent. What is the markup value?
A) $400
B) $480
C) $4800

Answer 1

B) $480

8,000*.06= 480

Answer 2

B) $480

Explanation:

We have been given that a car seller buys a car from a manufacturer for $8,000. He increases the cost by 6 percent. We are asked to find the markup value.

We know that markup is original cost times markup percentage. So markup value for the car would be :

`\text{Mark-up value of car}=\$8,000* (6)/(100)`

`\text{Mark-up value of car}=\$80* 6`

`\text{Mark-up value of car}=\$480`

Therefore, the mark-up value for the car is $480 and option B is the correct choice.