Question

Last year the vending machine sold drinks for $1.25. This year the price is $1.50. What is the percent of markup?

Answer 1

The percent of markup is 20%

Explanation:

Selling price of the drink = $1.50

Cost of the drink last year = $1.25

Percent of markup = (selling price - cost) (100)/cost

Percent of markup = (1.50 - 1.25)(100) /1.25

= 0.25(100) /1.25

= 25/1.25

= 20%

The percent of markup is 20%