Question

Write an equation for each percent problem and (b) solve.

What is the markup on an item that costs a retailer $120 if the markup rate is 40%?

Answer 1

The markup on a $120 item with a 40% markup rate is calculated by converting the percentage to a decimal (0.40) and then multiplying it by the cost price, resulting in a $48 markup.

Step-by-step explanation:

To find the markup on an item that costs a retailer $120 with a 40% markup rate, we need to first convert the percent to a decimal. Thus, 40% becomes 0.40. The markup can then be calculated by multiplying the cost price by the decimal markup rate.

Markup equation: Markup = Cost Price × Markup Rate

Using the figures given: Markup = $120 × 0.40 = $48.

Therefore, the retailer's markup on the item is $48.