Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest dollar when necessary.
-A store sells an item for $290 each. If this is a 40% markup on cost, find the equivalent markup percent on the selling price.
A)290%
B)28.6%
C)66.7%
D)47.6%

Question

Quizplus · Accepted Answer

The markup on the selling price is calculated by dividing the markup amount by the selling price. If the item sells for $290 and this represents a 40% markup on cost, first find the cost price. Let the cost price be $x. Then, $290 = x + 0.40x = 1.40x. Solving for x gives x = $290 / 1.40 = $207.14 (approximately). The markup amount is $290 - $207.14 = $82.86. The markup percent on the selling price is ($82.86 / $290) * 100% = 28.6%.

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