Question

The selling price of an item is $ 650 it is marked down by 10% , but this sale price is still marked up from the cost of $ 450. what is the mark up from cost to sale price.

Answer 1

Answer: 30% or $ 135.

Explanation

The mark up is generally expressed as a percentage. It is the percent increase on the cost.

We can calculate the mark up from cost to sale price of the item as a composition of steps. That is what the next steps show.

1) First step: calculate the the price after the item is marked down by 10%:

Selling price: $ 650

Mark down = 10% of 650 = 0.10 × $ 650 = $65

Price after mark down: $ 650 - $ 65 = $ 585.

2) Second step: difference of the price marked down to the cost:

$ 585 - $ 450 = $ 135

3) Calculate the percent mark up:

% mark up = (mark up / cost) × 100 = ($ 135 / $ 450) × 100 = 30%