MATH SOLVE

7 months ago

Q:
# ) If an item has a 75% markup on cost, what is its markup on selling price
percentage?

Accepted Solution

A:

Let's assume the cost of the item is C.
If there is a 75% markup on cost, then the selling price (S) of the item can be calculated as:
S = C + 0.75C
Simplifying this equation, we get:
S = 1.75C
The markup on selling price (MSP) is the difference between the selling price and the cost, expressed as a percentage of the selling price:
MSP = (S - C) / S * 100%
Substituting the expression we found for S, we get:
MSP = (1.75C - C) / 1.75C * 100%
Simplifying this equation, we get:
MSP = 0.75 / 1.75 * 100%
MSP = 42.857...%
Therefore, the markup on selling price percentage for an item with a 75% markup on cost is approximately 42.857%.