Question

Dorji asked Tenzin to help him sell his car at a price of Nu 200,000. Mean while Tenzin wants to make a profit of Nu 20,000 from the sale. Determine the percent markup?​

Answer 1

The selling price of the car that Tenzin will set to make a profit of Nu 20,000 will be:

Selling price = Cost price + Profit
Selling price = Nu 200,000 + Nu 20,000
Selling price = Nu 220,000

The markup is the percentage increase of the selling price over the cost price. It can be calculated using the formula:

Markup percentage = (Markup / Cost price) x 100%

In this case, the markup is Nu 20,000 and the cost price (the price at which Dorji wants to sell the car) is Nu 200,000. Therefore,

Markup percentage = (20,000 / 200,000) x 100%
Markup percentage = 0.1 x 100%
Markup percentage = 10%

Therefore, the markup that Tenzin will set to make a profit of Nu 20,000 is 10% of the cost price.