Question

A department store buys 300 shirts at a cost of $8,100 and sells them at a selling price of $30 each. What is the percent markup?

A) 60%
B) 125%
C) 270%
D) 275%

Answer 1

The percent markup is approximately 11.11%

`\[ \text{Percent Markup} = \left( \frac{\text{Selling Price} - \text{Cost Price}}{\text{Cost Price}} \right) * 100 \]`

In this case:

Cost Price of 300 shirts = $8,100

Selling Price of each shirt = $30

Total Cost Price for 300 shirts = Cost Price per shirt * Number of shirts = $8,100

Cost Price per shirt = Total Cost Price / Number of shirts = $8,100 / 300 = $27

Using the formula:

`\[ \text{Percent Markup} \\= \left( (30 - 27)/(27) \right) * 100 \\= \left( (3)/(27) \right) * 100 = \left( (1)/(9) \right) * 100 \\= 11.11\% \]`

Therefore, the percent markup is approximately 11.11%. None of the provided options is the calculated percentage.