Question

The food co-op club boasts that it has 4,700 members and a 185% increase in sales. its markup is 37% based on cost. what would be its percent markup if selling price were the base?

A. 37%
B. 78.45%
C. 46.3%
D. 185%

Answer 1

The percent markup based on the selling price can be found by dividing the markup by the selling price and then multiplying by 100. For a markup of 37%, if the cost is $100, then the selling price will be $137, making the percentage markup on the selling price approximately 27%, which does not match any provided options.

Step-by-step explanation:

To calculate the percent markup based on the selling price rather than cost, we must first understand the relationship between cost, markup, and selling price. The markup is the amount added to the cost of a product to create a selling price. Here, the markup is 37%, so if the cost is $100, the markup would be $37, making the selling price $137.

Percent markup based on selling price is calculated by dividing the markup by the selling price. Using the previous example:

Markup = $37
Selling Price = $100 (cost) + $37 (markup) = $137

Now, to find the percent markup on selling price:

Percent Markup on Selling Price = (Markup / Selling Price) × 100
Percent Markup on Selling Price = ($37 / $137) × 100 ≈ 27%

However, the provided options do not include this result, so this might be an indication that there is an error in the options or the way the question was posed. Since none of the options match our calculation, we need to ensure we have interpreted the question correctly and that the provided options should be re-evaluated.