Question

The cost to a store for a box of cereal is $2.50. The store is selling the cereal for $3.50. What is the percent of the markup?

Answer 1

So if the store bought the cereal at $2.50 and sold it for $3.50 there is a $1 markup.  This in terms of percentages is 1/2.50 = 0.4, which is a 40% markup.