Question

The cost to a store for an MP3 player is $60. The selling price is $105. A classmate says that the markup is 175% because $105$60=1.75. Is your classmate correct? Explain how your arrived at your answer. should be in the numerator and $60 should be in the denominator. So, the percent of markup is %. Question 2 Therefore, your classmate correct.

Answer 1

It is given that the cost price of the MP3 player is $60 and the selling price is $105.

The markup is given by the formula:

Markup = $\frac{S.P.}{C.P.} (100)$

= $\frac{105}{60} (100)$

= 1.75 × 100

= 175%

Yes, the classmate is correct.

Hence, the markup is 175% and the classmate is correct.