Rounded to the nearest whole percent, a markup of 35% on cost is equivalent to what percentage of gross profit on selling price?
A) 26%
B) 29%
C) 40%
D) 60%

Question

Quizplus · Accepted Answer

A markup of 35% on cost means the cost is increased by 35% to determine the selling price. If an item costs $100, a 35% markup would make the selling price $135. The gross profit is the selling price minus the cost, which is $35 in this case. To find the gross profit as a percentage of the selling price, divide the gross profit ($35) by the selling price ($135) and multiply by 100 to convert to a percentage: ($35 / $135) * 100 ≈ 25.93%, which rounds to 26%.

Rounded to the Nearest Whole Percent, a Markup of 35