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A store employee creates a display of computer printers priced at $86 apiece. The store paid $40 for each computer printer. What is the mark-up percentage?

User Msalafia
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1 Answer

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Final answer:

The mark-up percentage for the computer printers is calculated by subtracting the cost price from the selling price, dividing the result by the cost price, and multiplying by 100. The cost price is $40, the selling price is $86, resulting in a mark-up percentage of 115%.

Step-by-step explanation:

The subject of the question is to calculate the mark-up percentage for computer printers. The mark-up is the amount added to the cost price of goods to cover overhead and profit. To calculate the mark-up percentage, we need to find the difference between the selling price and the cost price, and then divide this by the cost price, finally multiplying by 100 to get a percentage.

The cost price is $40, and the selling price is $86. So, the mark-up is calculated as follows:

Mark-up = Selling Price - Cost Price

Mark-up = $86 - $40 = $46

Now, to find the mark-up percentage:

Mark-up Percentage = (Mark-up ÷ Cost Price) × 100

Mark-up Percentage = ($46 ÷ $40) × 100

Mark-up Percentage = 1.15 × 100

Mark-up Percentage = 115%

The mark-up percentage of the computer printers is 115%.