Question

Pete's Deli sells corned beef at $2.55 per pound. It pays its wholesaler $1.95 per pound. What is the markup rate based on A) cost and B) selling price? (Round to nearest tenth percent.)

Answer 1

Explanation:

Given

Selling price
`S.P.=\$ 2.55`

Cost price
`C.P.=\$ 1.95`

we know marked up price is

`C.P.+markup=S.P.`

Markup
`=2.55-1.95=\$ 0.6`

So markup according to cost price

`\Rightarrow (0.6)/(1.95)* 100=30.76\ \%`

Markup according to the selling price

`\Rightarrow (0.6)/(2.55)* 100=23.52\ \%`