Question

For the following questions please figure out the markup in the dollar amount and percentage:

a. A clothing store sells scarves for $17.95. If the cost per scarf is $13.50, what is the amount of the markup (in $)?

$_______

b. A wholesaler sells a guitar for $1,203.60. What is the percent markup based on cost if the wholesaler paid $680 for the guitar?

%_______

Answer 1

The markup amount on the scarf is $4.45. For the guitar, the markup percentage based on cost is 77%.

Step-by-step explanation:

Markup Calculations

To figure out the amount of markup in dollars and percentage, we will follow two steps. First, we subtract the cost price from the selling price to find the markup amount. Then, to find the markup percentage, we divide the markup amount by the cost price and multiply by 100.

a. Scarf Markup Calculation

Selling Price: $17.95
Cost Price: $13.50
Markup Amount: $17.95 - $13.50 = $4.45

b. Guitar Markup Percentage Calculation

Selling Price: $1,203.60
Cost Price: $680
Markup Amount: $1,203.60 - $680 = $523.60
Markup Percentage: ($523.60 ÷ $680) × 100 = 77%