Find the missing quantities by first computing the markup on one base and then computing the markup on the other. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
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A)Cost = $98.37 Selling price = $177.56 % Markup on selling price = 55.4%
B)Cost = $63.75 Selling price = $142.94 % Markup on selling price = 55.4%
C)Cost = $63.75 Selling price = $142.94 % Markup on selling price = 44.6%
D)Cost = $98.37 Selling price = $177.56 % Markup on selling price = 44.6%

Question

Find the missing quantities by first computing the markup on one base and then computing the markup on the other. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
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A)Cost = $98.37 Selling price = $177.56 % Markup on selling price = 55.4% 
B)Cost = $63.75 Selling price = $142.94 % Markup on selling price = 55.4% 
C)Cost = $63.75 Selling price = $142.94 % Markup on selling price = 44.6% 
D)Cost = $98.37 Selling price = $177.56 % Markup on selling price = 44.6%

Quizplus · Accepted Answer

To solve this, we can use the formula:

% Markup on selling price = (Selling Price - Cost) / Selling Price x 100%

First, we can compute the markup on one base by using the formula above with the given values:

A) % Markup on selling price = (177.56 - 98.37) / 177.56 x 100% = 44.6%
B) % Markup on selling price = (142.94 - 63.75) / 142.94 x 100% = 55.4%
C) % Markup on selling price = (142.94 - 63.75) / 142.94 x 100% = 55.4%
D) % Markup on selling price = (177.56 - 98.37) / 177.56 x 100% = 44.6%

Next, we can use the markup on one base that we just computed to find the missing quantities. We can use the formula:

Selling Price = Cost x (1 + % Markup on selling price)

To find the missing cost and selling price in each scenario:

A) Cost = 177.56 / (1 + 0.554) = $114.10
C) Cost = 142.94 / (1 + 0.446) = $98.37

Therefore, the best choices are D only, since it is the only scenario where the given selling price and markup on selling price match the computed values, and the cost can be found using the markup on one base method.

Find the Missing Quantities by First Computing the Markup on One