Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest dollar when necessary.
-An office supply store sells a computer disk for $87.95. If the cost is $60.67, find the percent of markup on cost and the equivalent percent of markup on selling price.
A)69%, 31%
B)45%, 31%
C)69%, 145%
D)45%, 69%

Question

Quizplus · Accepted Answer

The percent of markup on cost is calculated as [(Selling Price - Cost) / Cost] * 100. For this problem, it is [($87.95 - $60.67) / $60.67] * 100 ≈ 45%. The percent of markup on selling price is calculated as [(Selling Price - Cost) / Selling Price] * 100, which is [($87.95 - $60.67) / $87.95] * 100 ≈ 31%.

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