Question

Calloway department store buys jackets for $19.75 each and sells them for $37.88 each. what is the markup rate based on cost?

Answer 1

Answer : The markup rate based on cost is 91.79747%.

We have

Selling price per jacket = $37.88

Cost per jacket = $19.75

$Markup rate =[\frac{Selling Price - Cost}{Cost}] * 100$

Substituting the values in the formula above we get,

$Markup rate = [\frac{37.88-19.75}{19.75}] *100$

$Markup rate = [\frac{18.13}{19.75}] *100$

$Markup rate = 91.79746835$%