Final answer:
To calculate the markup on a tablet that costs $0.05 and sells for $0.20, subtract the cost from the selling price to get the markup amount, then divide by the cost, and multiply by 100 to find the percentage. The markup is 300%, making option (d) the correct answer.
Step-by-step explanation:
The markup on a product is the difference between the cost to produce or buy the product and the price at which it is sold. The markup can be expressed as a percentage of the cost. To calculate the markup percentage, you subtract the cost from the selling price to find the markup amount, then divide the markup amount by the cost, and finally multiply by 100 to convert it to a percentage.
Let's apply this to the provided example: A tablet costs $0.05 and is sold for $0.20. The markup can be calculated as follows:
- Markup Amount = Selling Price - Cost
- Markup Amount = $0.20 - $0.05 = $0.15
- Markup Percentage = (Markup Amount / Cost) x 100
- Markup Percentage = ($0.15 / $0.05) x 100 = 300%
Therefore, the markup on the tablet is 300%, which makes option (d) 300% the correct answer.