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 $550 each. If this is a 39.8% markup on the selling price, find the equivalent markup percent on cost.
A)550%
B)28.5%
C)66.1%
D)47.3%

Question

Quizplus · Accepted Answer

Let C be the cost price of the item.
The selling price can be calculated as 1.398C (since the markup is 39.8%)
$550 = 1.398C
C = $393.99
The markup on cost can be calculated as (selling price - cost price)/cost price * 100%
Markup on cost = ($550-$393.99)/$393.99 * 100%
Markup on cost = 39.6%
Rounding to the nearest tenth, the answer is 39.6% which is closest to choice C (66.1%). Therefore, the answer is C.

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