Question

The buyer for a chain of stores purchased leather couches in bulk, paying $750 each. The stores will sell each leather couch for $1,275. What is the mark-up percentage?

Answer 1

The mark-up percentage is 70%

Explanation:

Let us revise the rule of the mark-up percentage

`M=(S-P)/(P)` × 100%, where

• M is the mark-up percentage

• S is the selling price

• P is the purchasing price

let us use this rule to solve the question

∵ The buyer purchased leather couches in bulk, paying $750 each

∴ P = 750

∵ The stores will sell each leather couch for $1,275

∴ S = 1,275

→ Substitute them in the rule above

∴
`M=(1275-750)/(750)` × 100%

∴
`M=(525)/(750)` × 100%

∴ M = 70%

∴ The mark-up percentage is 70%