Question

A store manager paid $95 for an item and set the selling price at $116.85. What was the percent markup?

Answer 1

We have been given that a store manager paid $95 for an item and set the selling price at $116.85. We are asked to find the percent mark-up.

We will use percent increase formula to solve our given problem.  

$\text{Percent increase}=\frac{\text{Final}-\text{Initial}}{\text{Initial}}\times 100\%$

$\text{Percent increase}=\frac{\ 116.85-\ 95}{\ 95}\times 100\%$

$\text{Percent increase}=\frac{\ 21.85}{\ 95}\times 100\%$

$\text{Percent increase}=0.23\times 100\%$

$\text{Percent increase}=23\%$

Therefore, the mark-up will be 23% and option 'b' is the correct choice.