The markup percentage on the new product would be closest to:
A)15.0%
B)46.6%
C)31.6%
D)50.0%

Question

Quizplus · Accepted Answer

Using the formula for markup percentage:
Markup percentage = (Selling price - Cost price)/Cost price x 100%
Let's calculate the selling price first:
Selling price = Cost price + Profit
Selling price = $140 + ($140 x 0.2)
Selling price = $140 + $28
Selling price = $168
Now, let's calculate the markup percentage:
Markup percentage = ($168 - $120) / $120 x 100%
Markup percentage = $48 / $120 x 100%
Markup percentage = 0.4 x 100%
Markup percentage = 40%
Therefore, the closest option is C) 31.6%, which is the closest rounded percentage to 40%.

The Markup Percentage on the New Product Would Be Closest