Question

6. For a particular pickup truck, the percent markup is known to be 115% based on cost to the seller. If the seller paid $15,800 for the truck, what would be the percent markup be based on the sale price? (Round to the nearest tenth percent)

Answer 1

Answer:

• 53.5 %

Explanation:

You can convert the percent markup into a multiplicative factor in this way:

Base price:                     15,800 . . . (cost to the seller)

Percent mark up:           115% . . .  (based on the cost to the seller)

Sale price:                      15,800 + 115% of x = 15,800 + 115 × 15,800 /100 =

                                        = 15,800 + 1.15 × 15,800 = 15,800 (2.15) = 33,970

The markup is:

• Markup = price paid by the seller - cost to the seller = 33,970 - 15,800   = 18,170 (notice that this is 115% of 15,800)

And the percent markup based on the sale price is:

• % = (markup / sale price) × 100 = (18,700 / 33,970) × 100 =

            = 53.49 %

Rounding to the nearest tenth percent that is 53.5 %.