Question

A manufacturer sells its products to a wholesaler for $73 each. The

wholesaler then marks up those products and sells them to retailers
for $80.43. What is the wholesaler's markup rate? Round to the
nearest hundredth.

Answer 1

The wholesaler's markup is the difference between the selling price and the cost price, which is $80.43 - $73 = $7.43.

The markup rate can be found by dividing the markup by the cost price and multiplying by 100 to get a percentage:

markup rate = (markup / cost price) x 100%

markup rate = ($7.43 / $73) x 100%

markup rate = 10.17%

Therefore, the wholesaler's markup rate is 10.17%, rounded to the nearest hundredth.