Question

A department store buys 300 shirts at a cost of $2,400 and sells them at a selling price of $10 each. Find the percent markup.

A. 300%
B. 400%
C. 500%
D. 600%

Answer 1

To find the percent markup, subtract the total cost from the total selling price and divide by the total cost, then multiply by 100%. The percent markup is 25%, corresponding to option D.

Step-by-step explanation:

To find the percent markup, we need to first determine the total cost and the total selling price of the shirts.

Total cost = number of shirts bought × cost per shirt = 300 × $2,400 = $720,000

Total selling price = number of shirts sold × selling price per shirt = 300 × $10 = $3,000

Now we can calculate the percent markup using the following formula:

Percent markup = (Total selling price - Total cost) ÷ Total cost × 100%

Percent markup = ($3,000 - $2,400) ÷ $2,400 × 100% = $600 ÷ $2,400 × 100% = 0.25 × 100% = 25%

Therefore, the percent markup is 25%, which corresponds to option D.