Question

If a home goods retailer pays $35.50 for the vacuum cleaner shown here, answer the following questions. (Round dollars to the nearest cent and percents to the nearest tenth of a percent.) An advertisement has a picture of a vacuum cleaner. From top to bottom, the text of the ad is as follows. 12 amp Powervac Plus $89.99 Microfiltration On-board tools 1 year Product Replacement Policy, $7.99. If the retailer pays $1.60 to the insurance company for each product replacement policy sold, what is the percent markup based on selling price of the vacuum cleaner and policy combination?

Answer 1

The Markup percentage is mathematically given as

M=42%

What is Mark up percentage?

The markup % may be determined by dividing the gross profit of a unit (the difference between its sales price and the amount it cost to create or buy for resale) by the amount that unit originally cost. If a product sells for $12 but only costs the corporation $8 to produce it, the markup percentage for that product is 50%, which can be calculated as (12 - 8) divided by 8.

Generally, the equation for is Total cost price mathematically given as

TCP= Pay+insurance

Therefore

TCP=35.5*1.6

TCP=284/5

Generally, the equation for is Total selling price mathematically given as

TSP=89.99+7.99

TSP=97.98

In conclusion, Mark up percentage is

$M=\frac{SP-CP}{SP}*100$

$M= \frac {97.98 - (284/5) }{97.98} *100$

M=0.4202898551*100

M=42%

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