Question

After the chiefs won the super bowl, Shirt Palace had a rush of customers wanting a super bowl shirt. Jimmy had to put in a rush order of 200 shirts (see question 1 wholesale cost of each shirt) Since they were cheifs shirts, Shirt palace was able to charge a premium per shirt. If each shirt sells for $50, what percent is the mark up on each shirt?

Answer 1

Answer: the markup percentage on each shirt is 150%

Explanation:

We can start by finding the total revenue generated by selling 200 shirts at $50 each:

Total revenue = 200 * $50 = $10,000

To find the markup percentage, we need to know the cost of producing the shirts. Let's assume the wholesale cost of each shirt is $20 (as given in the previous question).

The total cost of the 200 shirts is:

Total cost = 200 * $20 = $4,000

The profit earned from selling the 200 shirts is:

Profit = Total revenue - Total cost = $10,000 - $4,000 = $6,000

The markup amount per shirt is:

Markup = Selling price - Cost price = $50 - $20 = $30

The markup percentage can be calculated as:

Markup percentage = (Markup / Cost price) x 100%

Markup percentage = ($30 / $20) x 100% = 150%

Therefore, the markup percentage on each shirt is 150%.