Question

A store manager paid $95 for an item and set the selling price at $116.85. What was the percent markup?

a
24%
b
23%
c
25%
d
18%

Answer 1

We have been given that a store manager paid $95 for an item and set the selling price at $116.85. We are asked to find the percent mark-up.

We will use percent increase formula to solve our given problem.

`\text{Percent increase}=\frac{\text{Final}-\text{Initial}}{\text{Initial}}* 100\%`

`\text{Percent increase}=(\$116.85-\$95)/(\$95)* 100\%`

`\text{Percent increase}=(\$21.85)/(\$95)* 100\%`

`\text{Percent increase}=0.23* 100\%`

`\text{Percent increase}=23\%`

Therefore, the mark-up will be 23% and option 'b' is the correct choice.