The percent markup on a tricycle is known to be 24% based on selling price. If the seller paid $24.50 for one, then what would be the corresponding percent markup based on the cost? (Round to the nearest tenth percent)
A) 76.0%
B) 29.4%
C) 24.7%
D) 31.6%

Question

Quizplus · Accepted Answer

To find the percent markup based on cost, first determine the selling price using the formula: Selling Price = Cost / (1 - Markup based on Selling Price). Here, Selling Price = $24.50 / (1 - 0.24) = $32.24. The markup based on cost is then calculated as: (Selling Price - Cost) / Cost * 100 = ($32.24 - $24.50) / $24.50 * 100 = 31.6%.

The Percent Markup on a Tricycle Is Known to Be