Question

The Shoe Outlet bought boots for $60 and marks up the boots 55% on the selling price. What is the selling price of the boots?

Answer 1

Answer: The markup- 122.225%

Revenue/price- 133.33$

Gross profit- 73.33%

Step-by-step explanation:

The gross profit P is the difference between the cost to make a product C and the selling price or revenue R.

P = R - C

To calculate revenue R based on the cost C and the desired gross margin G, where G is in decimal form:

R = C / ( 1 - G)

The gross profit dollars P is the revenue dollars R from the sale times the gross margin G percentage, where G is in decimal form :

P = R * G

The markup percentage M, in decimal form, is gross profit P divided by cost C.

M = P/ C

M * 100 will change the decimal to a percentage.