Question

A store paid $12 for a sweatshirt and sold the sweatshirt of $19.20. What was the percent markup (increase) of the sweatshirt? *

Answer 1

The percent markup of the sweatshirt is 60%

Here, we want to calculate the percenatge of profit made by the store

Mathematically;

$\text{Percentage markup = }\frac{(sales\text{ price-cost price)}}{\cos t\text{ price}}\text{ }\times\text{ 100\%}$

From the question, we can deduce the following;

cost price is the price the store bought the sweatshirt = $12

sales price is the amount in which they sold the sweatshirt = $19.20

Thus, we proceed to substitute these values into the markup equation above;

$\begin{gathered} \text{Perecentage markup = }\frac{(19.20-12)}{12}\text{ }\times\text{ 100\%} \\ \\ \text{Percentage markup = }\frac{7.20}{12}\text{ }\times\text{ 100\%} \\ \\ =\text{ 60\%} \end{gathered}$