Question

  A store that buys and sells used video games buys a game at a cost of ​$9 and sells it at a selling price of ​$12. Find the markup. Then find the percent markup.

Answer 1

Answer:

a) markup = $3

b) markup as a percentage of cost is 33.3%

Step-by-step explanation:

Markup

... markup = selling price - cost

... = $12 - 9

... markup = $3

Markup as a Percentage of Cost

To find the percent markup, divide the markup by the reference value and multiply the ratio by 100%. The reference value for markup is usually cost price, but sometimes may be selling price.

... markup / cost × 100% = 3/9×100% = 33 1/3% ≈ 33.3%

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When the markup is figured as a percentage of selling price, the result is usually called margin. Some folks are not very careful in distinguishing markup from margin.