A 60.0% markup based on cost is equivalent to what percent based on selling price (retail)?
A) 66.7%
B) 33.3%
C) 37.5%
D) 62.5%

Question

Quizplus · Accepted Answer

Let the cost be $100. Markup based on cost is 60%, so the selling price would be $160. 
Now, to find the equivalent percent based on selling price, we need to find the percentage increase from cost to selling price. 
Increase = Selling price - Cost = $160 - $100 = $60 
Percentage increase = (Increase / Cost) x 100 = (60/100) x 100 = 60%
Therefore, a 60% markup based on cost is equivalent to a 37.5% markup based on selling price (retail), which is Option C.

A 600% Markup Based on Cost Is Equivalent to What Percent