Question

The Horizons Cycle Shop bought 3 motorcycles for $2,100, and sold each one for $1,000. The markup percent was: A. 33 1/3. B. 30. C. 142. D. 50. E. There is not enough information to tell.

Answer 1

Answer: B. 30%

Explanation:

They bought the motorcycles for $2,100 and sold them for $1,000 each.

This means that they sold for a total of 1,000 x 3 = $3,000.

The markup was $3,000 minus the cost price of $2,100 which comes out to $900.

The markup percent would be the Markup amount over the selling price.

= 900/ 3000

= 0.3

= 30%

Please do react or comment if you need clarification. Thank you.

Answer 2

Answer:

E. The mark up percent is 42.86%. There is not enough information to tell.

Explanation:

Markup is the difference between a product's selling price and cost as a percentage of the cost.

The cost of the 3 motorcycle = $2100.

But each was sold at $1000, so that the selling price for the 3 motorcycle

                                           = $1000 × 3

                                           = $3000

The additional price increase = $3000 - $2100

                                                 = $900

The markup percent = $\frac{additional price increase}{cost} * 100$

                                  = $\frac{900}{2100} * 100$

                                  = 42.86%

Since this value is not in the options, then option e is the answer.