Question

Markup & Markdown

In the questions below, you will be ask about situations involving markups and

markdowns. Anytime your answer deals with money, round to the nearest hundredths place and

include proper unit labels. Be sure to show all of your work for each problem.

1. The managers at the hunting store usually determine their prices by using a markup of 11

percent. If they purchased camo pants for $45 each, what will be the price for their customers?

2. The fishing store manager buys flies from a wholesale company for $2.50 apiece. If he prices

each fly for the customers at $3.75, what is the markup percentage?

0.45+100x 11=4.95+45=49.95

50-1008 2.50 = 1.25=50%,

3. The pet store managers purchase dog food from a wholesale company for $3.75 a bag. If

they sell the dog food to the customers for $5.00 a bag, what is the markup percentage they are

using?

Answer 1

$49.95 ; 50% ; 33.33%

Explanation:

1.)

Markup % = 11%

Purchase price = $45

Selling price will be :

(100 + 11)% * $45

1.11 * $45 = $49.95

2.)

Purchase price = $2.50

Selling price = $3.75

Markup % :

Profit / purchase price * 100%

[(3.75 - 2.50) / 2.50)] * 100%

1.25 / 2.50 * 100%

0.5 * 100% = 50%

3.)

Purchase price = $3.75

Selling price = $5.00

Markup % :

Profit / purchase price * 100%

[(5.00 - 3.75) / 3.75)] * 100%

1.25 / 3.75 * 100%

0.3333 * 100% = 33.33%