Question

By conversion of the markup formula, solve the following.

Note: Round your answer to the nearest whole percent.

Percent markup on cost: ?
Percent markup on selling price: 25%

Answer 1

Markup on cost price is 75%

Percent markup on selling price: 25%

Percent markup on cost: ?

Markup is the total profit on a particular commodity or service. It is represented as a percentage over a cost price.

Percent markup on selling price is 25% which means that a product is sold out with 25% profit,

Percent markup on cost price =100-markup on selling price

= 100-25

=75

Hence, markup on cost price is 75%

Answer 2

The percent markup on cost
`(\(MU\))` is 20%

The percent markup on cost
`(\(MU\))` and the percent markup on selling price
`(\(MSP\))` are related by the following formula:

`\[ MSP = (MU)/(1 - (MU)/(100)) \]`

In this case, you are given that the percent markup on selling price
`(\(MSP\))` is 25%. Let's substitute this value into the formula and solve for the percent markup on cost
`(\(MU\))`:

`\[ 25 = (MU)/(1 - (MU)/(100)) \]`

To solve for
`\(MU\)`, you can cross-multiply:

`\[ 25 \left(1 - (MU)/(100)\right) = MU \]`

Distribute the 25:

`\[ 25 - (25MU)/(100) = MU \]`

Simplify the equation:

`\[ 25 - (1)/(4)MU = MU \]`

Add
`\((1)/(4)MU\)` to both sides:

`\[ 25 = (5)/(4)MU \]`

Now, solve for
`\(MU\)`:

`\[ MU = (25 * 4)/(5) \]`

`\[ MU = 20 \]`

So, the percent markup on cost
`(\(MU\))` is 20%.