Question

Bismark Tractor put a markup of 26% on cost on a part for which it paid $450. Find the markup

Answer 1

Let's call the markup as x. The markup is the difference in cost between your selling price and the amount you spent to make your product. Bismark Tractor put a markup of 26% on cost, which means that the selling price was 26% more than the cost price. Since he paid $450 for the part, this gives to us the following equation

`450+x=(1+0.26)\cdot450`

Solving it for x, we have

`\begin{gathered} 450+x=(1+0.26)\cdot450 \\ 450+x=1.26\cdot450 \\ x=1.26\cdot450-450 \\ x=0.26\cdot450 \\ x=117 \end{gathered}`

The markup was $117.