Question

A Honda Element with a dealer invoice price of $19,700 was retail priced at $23,000 how much is the approximate percent markup based on selling price ?
Please Help

Answer 1

So the mark up is 23,000-19,700 = 3,300

To figure of what the percent of markup is based on the SELLING price:

3,300/23,000 = x/100; now cross multiply and you have:
23,000x = 3,300(100)
23,000x = 330,000; isolate x by dividing both sides by 23,000, and you get x= 14.35

To check your work multiply 23,000 x 0.1435 = 3000.05, which was the approximate amount of markup