Question

Please help!! markup and markdown word problem.

A computer software retailer used a markup of 150%. Find the cost of the computer game that cost the retailer $25.

Answer 1

Explanation:

"markup" contains "up". so, the price goes "up". this is actually increasing the price (e.g. by calculating the profit margin of selling an item on top of the cost of buying the item from the manufacturer).

"markdown" contains "down". so, the price goes "down". e.g. with discounts.

here we have a markup. it is 150%.

that means the price goes up by 150% compared to the original cost.

so, the computer game costs in the store

the original cost + 1.5× original costs

25 + 1.5×25 = 2.5×25 = $62.50