Question

Manufactured 50.88 pair. Customer paid 90.10 and customer price included 6.25% sales taxes . What is the mark up?

Answer 1

Answer:

The markup (in percentage) is 66.67%

The markup (in dollars) is $33.92

Step-by-step explanation:

First, we will find the sales price of the product (excluding sales tax).

Let sales price be "x", so we can say:

x increased by 6.25% is 90.10

Note:  6.25/100 = 0.0625

Thus, we can write an equation and solve for x now:

$x + 0.0625x = 90.10\\1.0625x=90.10\\x=\frac{90.10}{1.0625}\\x=84.8$

The markup is a percentage of the cost.

The markup is the difference in cost and sales price, divided by cost. Then we multiply by 100 to get percentage. So:

MarkUp = $\frac{84.8-50.88}{50.88}*100=66.67$

The markup (in percentage) is 66.67%

In dollars, it will be $33.92