A local dealer sells baseballs for $25.00 each. If this is a 34.7% markup on selling price, find the equivalent markup percent on cost.
A) 25.8%
B) 34.7%
C) 46.9%
D) 53.1%

Question

Quizplus · Accepted Answer

Let's call the cost of one baseball "C". According to the problem, the selling price is a 34.7% markup on the selling price. We can write this as:

selling price = cost + 34.7% of cost
$25.00 = C + 0.347C
$25.00 = 1.347C
C = $18.56

So the cost of one baseball is $18.56. To find the equivalent markup percent on cost, we need to find how much the selling price exceeds the cost as a percentage of the cost. This is:

markup on cost = (selling price - cost) / cost x 100%
markup on cost = ($25.00 - $18.56) / $18.56 x 100%
markup on cost = $6.44 / $18.56 x 100%
markup on cost = 34.7%

Therefore, the equivalent markup percent on cost is also 34.7%, which is answer choice D.

A Local Dealer Sells Baseballs for $25