Question

A seller buys an item from a manufacturer for $9,500. He increases the cost by 5 percent. What is the markup value?

Answer 1

5% of 9,500 is 475 so you would add them together. 9,500 + 475 = 9,975 so 9,975 is the answer

Answer 2

$9975

consider $9500 to be 100% then an increase of 5% means the cost will be

100 + 5 = 105% = $\frac{105}{100}$ = 1.05 of an increase

markup = 1.05 × $9500 = $9975