Question

Bismark Tractor put a markup of 26% on cost on a part for which it paid $350. Find the markup

Answer 1

From the question

Percentage markup = 26%

Selling price(SP) = $350

To find the Markup

The formula below will be used

`\text{ \%Markup }=(SP-CP)/(CP)-100\text{\%}`

Since Cost price(CP) is not given

Hence, substitute given values to find CP

`26=(350-CP)/(CP)*100`

Solve for CP

Cross multiply

`26CP=100(350-CP)`

Expand the bracket

`26CP=35000-100CP`

Collect like terms

`\begin{gathered} 26CP+100CP=35000 \\ 126CP=35000 \end{gathered}`

Divide both sides by 126

`\begin{gathered} (126CP)/(126)=(35000)/(126) \\ CP=\text{ \$}277.78 \end{gathered}`

Hence the cost price is $277.78

To find Markup the formula below will be used

`\text{Markup }=SP-CP`

Hence,

`\begin{gathered} \text{Markup }=\text{ \$}350-\text{ \$}277.78 \\ \text{Markup }=\text{ \$}72.22 \end{gathered}`

Therefore, the markup is $72.22