Question

A sporting goods store buys a baseball hat for $15.00. The store sells the hat for $24.00. What is the markup rate?

Answer 1

Cost = $15

Selling Price = $24

The markup is the increased price expressed as a percentage of the cost.

The formula is:

`MU=(SP-C)/(C)*100`

Where

MU is the Markup

SP is the Selling Price

C is the Cost

Given,

SP = 24

C = 15, Let's figure out the Markup. Shown below:

`\begin{gathered} MU=(SP-C)/(C)*100 \\ MU=(24-15)/(15)*100 \\ MU=(9)/(15)*100 \\ MU=(3)/(5)*100 \\ MU=(300)/(5) \\ MU=60\% \end{gathered}`

Thus, the markup rate is

60%