Question

A retailer sells antique clocks for $545 that were acquired at a cost of $250. What percentage is the mark-up?

Answer 1

The retail mark-up percentage on the antique clocks is calculated by dividing the difference between the selling price and cost price by the cost price, then multiplying by 100%. This results in a mark-up of 118%.

Step-by-step explanation:

To calculate the percentage mark-up, we use the formula:

Percentage Mark-Up = ((Selling Price - Cost Price) / Cost Price) × 100%

From the question, the Selling Price (SP) is $545 and the Cost Price (CP) is $250.

Therefore, let's calculate the mark-up percentage:

Mark-Up = $545 - $250

Mark-Up = $295

Percentage Mark-Up = ($295 / $250) × 100%

Percentage Mark-Up = (1.18) × 100%

Percentage Mark-Up = 118%

So, the retailer has a 118% mark-up on the antique clocks.