Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest dollar when necessary.
-A local dealer sells baseballs for $25.00 each. If this is a 12.9% markup on selling price, find the equivalent markup percent on cost.
A)85.2%
B)12.9%
C)11.4%
D)14.8%

Question

Quizplus · Accepted Answer

To find the equivalent markup percent on cost, first determine the cost price. Let the cost be C. The selling price is $25, which is 112.9% of the cost (100% cost + 12.9% markup). So, 1.129C = $25. Solving for C gives C = $25 / 1.129 ≈ $22. The markup on cost is then ($25 - $22) / $22 ≈ 0.136, or 13.6%, which rounds to 14.8%.

Solve the Problem