Question

Calculate the markupA retailer purchases computers for $700 and plans to sell them for $1000. What is the markup in dollars? What is the markup rate?

Answer 1

Given:

The cost price=$700.

The selling price =$1000

Required:

We need to find the markup and markup rate.

Step-by-step explanation:

Consider the markup formula.

`Markup=Selling\text{ price-cost price}`

Substitute Selling price=1000 and cost price =700 in the formula.

`Markup=1000-700`
`Markup=\text{ \$}300`

Consider the markup rate formula.

`Markup\text{ rate}=\frac{Sellingprice-costprice}{cost\text{ price}}*100`

Substitute Selling price=1000 and cost price =700 in the formula.

`Markup\text{ rate}=(1000-700)/(700)*100`
`Markup\text{ rate}=(300)/(700)*100`
`Markup\text{ rate}=42.85714`
`Markup\text{ rate}=42.86\text{ \%}`

Final answer:

`Markup\text{ in dollars}=\text{ \$}300`
`Markup\text{ rate}=42.86\text{ \%}`