Question

If the makeup rate on the cost of an outdoor gas grill is 30%, find the equivalent markup rate on the selling price. Use the following formula to find the answer(remember that you may need to round to the third decimal place which is equivalent to rounding to one tenth of a percent.)
Mark up rate on selling price=Markup rate cost/(1+ Narkup rate on cost)
A. 23.1%
B. 86.7%
C. 31.7%
D. 72.9%

Answer 1

Answer: the option A. 23.1%

Explanation:


1) You are given the formula:

Mark up rate on selling price = markup rate cost / (1+ markup rate on cost)


2) You are given the markup rate cost: 30% = 0.30

3) Then, you just have to replace the value in the formula:


Mark up rate on selling price = 0.30 /(1+ 0.30) = 0.30 / 1.30 ≈ 0.2308


To pass to percent just multiply by 100: 0.2308 × 100 = 23.08% ≈ 23.1%


And that is the answer.