Question

A clothing store put a sales price of $57 on a purse. Before the markup, the store paid $30 for the purse. What percent markup did the store put on the purse?

Answer 1

Gross Profit Margin = Sales Price – Unit Cost = $57 – $30 = $27.

Markup Percentage = Gross Profit Margin/Unit Cost = $27/$30= 90%.

90% markup

Check

Sales Price = Cost X Markup Percentage + Cost = $30 X 90% + $30= $57

Answer 2

The percent markup is $27