Question

A store buys a brand of shirts at a cost of $25 each. The store sells each shirt for $45. By what percent are the shirts marked up?

a) 45%
b) 55%
c) 80%
d) 20%

Answer 1

To calculate the markup percentage, subtract the cost price from the selling price to find the markup amount and then divide this by the cost price. Multiply the result by 100 to find the percentage. The shirts are marked up by 80%.

Step-by-step explanation:

To find the markup percentage, we need to determine the increase in price from the store's cost to the selling price, and then divide that increase by the original cost. The calculation is as follows:

Markup = Selling Price - Cost Price
Markup = $45 - $25
Markup = $20

Now, to find the markup percentage, we divide the markup by the cost price and then multiply by 100 to get a percentage:

Markup Percentage = (Markup / Cost Price) * 100
Markup Percentage = ($20 / $25) * 100
Markup Percentage = 0.8 * 100
Markup Percentage = 80%

Therefore, the shirts are marked up by 80%.