Question

A department store buys 400 shirts at a cost of $4800 and sells them at a selling price of $20 each. Find the percent markup.

Option 1: 20%
Option 2: 25%
Option 3: 30%
Option 4: 35%

Answer 1

To find the percent markup, calculate the profit made by the department store and divide it by the cost price.

Step-by-step explanation:

To find the percent markup, we need to calculate the profit made by the department store. The profit is the selling price minus the cost price. In this case, the selling price of each shirt is $20 and the cost price of each shirt is $4800 / 400 = $12. So the profit per shirt is $20 - $12 = $8.

Now, we can find the total profit made by multiplying the profit per shirt by the number of shirts: $8 * 400 = $3200.

To find the percent markup, we divide the profit by the cost price and multiply by 100: ($3200 / $4800) * 100 = 66.67%.

Therefore, the percent markup is approximately 66.67%, which is not one of the options given. So, none of the options provided is correct.