Question

Assume markup is based on cost. Complete: Cost% of markup amount of markup Selling price $50030

A. $150
B. $100
C. $50
D. $30

Answer 1

The amount of markup on a $500 item with a 30% markup rate is $150, making the selling price $650.

Step-by-step explanation:

To compute the amount of markup based on cost, you would multiply the cost by the markup percentage expressed as a decimal. In the provided question, the cost is $500 and the markup percentage is 30%. To find the amount of markup, you convert 30% to a decimal (0.30) and multiply it by the cost:

$500 × 0.30 = $150

Therefore, the amount of markup on a $500 item at a 30% markup rate is $150, which leads us to option A. $150. The selling price would then be the cost plus the markup amount, so:

$500 + $150 = $650

The selling price of the item is $650.