Question

Please calculate the answer to the following problem, showing all of your work. NO CREDIT will be given if I cannot follow your calculations. This assignment should be hand-written.
The percent markup on a pickup truck is known to be 112% based upon cost to the seller. If the seller paid $15,800 for the truck, what would be the corresponding percent markup based upon the sale price? Please round your answer to nearest tenth of one percent.

Answer 1

Answer: 52.8%

Explanation:

The mark-up is simply referred to as the amount that is been added to the cost price of a particular good or service so that the profits and the overheads can be covered.

Based on the information given in the question, the mark up in terms of dollars would be calculated as:

= 15800 × 112%

= 15800 × 1.12

= 17696

The sale price will therefore be:

= 15800 + 17696

= 33496

The percent markup based upon the sale price would be:

= 17696/33496

= 52.8%