Question

Given a Markup of $7.20 and a Selling Price of $43.20 find the Percent Markup on Cost.

Answer 1

Given:

`\begin{gathered} \text{markup}=\text{ \$7.20} \\ \text{Selling price (S.P)= \$43.20} \\ \text{Cost price (C.P)=?} \end{gathered}`
`\text{markup}=\text{Selling price-cost price}`

To get the Cost price,

`\begin{gathered} \text{Cost price (C.P)=Selling price-markup} \\ C\mathrm{}P=43.20-7.20 \\ C\mathrm{}P=\text{ \$36} \end{gathered}`

To calculate the percentage markup, the formula below is used;

`\begin{gathered} \text{Percent markup=}\frac{\text{markup}}{\cos t\text{ price}}*100\text{ \%} \\ \text{Percent markup=}(7.20)/(36)*100\text{ \%} \\ \text{Percent markup=}(720)/(36)\text{ \%} \\ \text{Percent markup= 20\%} \end{gathered}`

Therefore, the percent markup on cost is 20%