61.4k views
5 votes
Given a Markup of $8.45 and a Selling Price of $42.25 find the Percent Markup on Cost.

User Chrisvdb
by
8.3k points

1 Answer

5 votes

Markup (or price spread) is the difference between the selling price of a good or service and cost.

Given:

Markup = $8.45

Selling Price = $42.25

Percent Mark up is given as


Markup\text{ Percentage = }\frac{Selling\text{ Price }-Cost\text{ Price}}{Cost\text{ price}}*100\text{\%}

Since

Markup = Selling Price - Cost Price

This implies

Cost Price = Selling Price - Markup

Hence


\begin{gathered} \text{Cost Price }=42.25-8.45 \\ \text{Cost Price }=\text{ \$33.8} \end{gathered}

Hence, percent Markup is calculated as


Markup\text{ Percentage =}(42.25-33.8)/(33.8)*100

Simplify the equation


\begin{gathered} Markup\text{ Percentage =}(8.45)/(33.8)*100 \\ Markup\text{ Percentage =}0.25*100 \\ Markup\text{ Percentage =}25\text{\%} \end{gathered}

Therefore, the percent markup is 25%

User Oleksandr Loushkin
by
7.8k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories