Question

The Sports Brand Company is making a new shoe that has a wholesale price of $40, and it wishes to advertise a retail price of $89.99. What is the markup percentage? Give answer to nearest whole percent. (hint: change decimal to percent, % will not be typed)

Answer 1

Markup Percentage = 125%

Explanation:

The wholesale price is $40, the "selling price" is $89.99.

90-40=50 (Profit)

Now that we know the profit , we need to find the percentage.

To find this percentage we can use the formula: (M=Markup percent)

`M=profit/cost*100%`

In this situation, we can insert PROFIT= 50, Cost=40

M=50/40*100

= 1.25*100

=125%