A 25 percent markup at cost equals what markup at retail?
A) 10 percent
B) 15 percent
C) 20 percent
D) 40 percent

Question

Quizplus · Accepted Answer

To find the markup at retail, we need to use the formula:

Markup at retail = (Markup at cost / Cost) x 100%

In this case, the markup at cost is 25 percent. So, if the item costs $100 at wholesale, the markup would be $25. The retail price would then be $125 ($100 + $25).

To find the markup at retail, we can use the same formula:

Markup at retail = ($25 / $100) x 100% = 25%

Therefore, the markup at retail is 20 percent (not one of the answer choices given in the question).

A 25 Percent Markup at Cost Equals What Markup at Retail