Question

Given a Markup of $8.45 and a Selling Price of $42.25 find the Percent Markup on Cost.

Answer 1

Markup (or price spread) is the difference between the selling price of a good or service and cost.

Given:

Markup = $8.45

Selling Price = $42.25

Percent Mark up is given as

`Markup\text{ Percentage = }\frac{Selling\text{ Price }-Cost\text{ Price}}{Cost\text{ price}}*100\text{\%}`

Since

Markup = Selling Price - Cost Price

This implies

Cost Price = Selling Price - Markup

Hence

`\begin{gathered} \text{Cost Price }=42.25-8.45 \\ \text{Cost Price }=\text{ \$33.8} \end{gathered}`

Hence, percent Markup is calculated as

`Markup\text{ Percentage =}(42.25-33.8)/(33.8)*100`

Simplify the equation

`\begin{gathered} Markup\text{ Percentage =}(8.45)/(33.8)*100 \\ Markup\text{ Percentage =}0.25*100 \\ Markup\text{ Percentage =}25\text{\%} \end{gathered}`

Therefore, the percent markup is 25%