Final answer:
The mark-up amount is calculated by taking 20% of the cost price, which in this case is 0.2 multiplied by RM5, resulting in an RM1 mark-up.
Step-by-step explanation:
The calculation of the mark-up amount is a fundamental concept in the field of mathematics, specifically relating to the percentage operations in algebraic contexts.
When David's pet food store pays RM5 for a pack of cat treats and marks up the price by 20%, we calculate the markup by taking 20% of the RM5 cost price.
To find this, we convert the percentage to a decimal by dividing by 100 (which gives us 0.2) and then multiply that decimal by the cost price.
To perform the calculation: Mark-up amount = 20% of RM5 = 0.2 × RM5 = RM1.
Therefore, the amount of the mark-up on a pack of cat treats is RM1.