Question

The selling price of an item is ​$650. It is marked down by ​20%, but this sale price is still marked up from the cost of ​$400. Find the markup from cost to sale price.

Answer 1

Answer: The markup from cost to sale price = $120.

Explanation:

Given: Selling price per item = $650

Marked down price = 20% of (Selling price)

= 0.20 x $650

= $ 130

New selling price = Old selling price - Marked down price

= $(650-130) = $520

Since new selling price is still greater than the cost of $400.

Mark up from cost to selling price = New selling price - Cost

= $(520-400)

=$120

Hence, the markup from cost to sale price = $120.