Question

Jacqueline bought a cellphone at wholesale cost for 210$. If the phone is normally 300$ from the local retail store, what is the percent markup the store adds to the wholesale cost?

Answer 1

To determine the percent markup, subtract the wholesale cost from the retail price to find the markup amount; then divide the markup amount by the wholesale cost and multiply by 100. For this question, the markup is $90 ($300 retail price minus $210 wholesale cost), which equals a 42.86% markup when compared to the wholesale cost.

Step-by-step explanation:

Calculating the Percent Markup

To calculate the percent markup that the store adds to the wholesale cost of the cellphone, you need to first determine the difference between the retail price and the wholesale cost. The retail price is the amount for which the store sells the phone to customers, and the wholesale cost is the amount the store paid for the phone initially.

First, find the markup amount:

• Retail Price: $300
• Wholesale Cost: $210
• Markup Amount: Retail Price - Wholesale Cost = $300 - $210 = $90

Next, calculate the percent markup relative to the wholesale cost:

Percent Markup = (Markup Amount ÷ Wholesale Cost) × 100

Substitute the values into the percent markup formula:

Percent Markup = ($90 ÷ $210) × 100

Percent Markup = 0.4286... × 100

Percent Markup = 42.86%

The store adds a 42.86% markup on the wholesale price of the cellphone to reach the retail price.