Question

Pete's Deli sells corned beef at $2.55 per pound. It pays its wholesaler $1.95 per pound. What is the markup rate based on A) cost and B) selling price? (Round to nearest tenth percent.)

Answer 1

Answer:

Step-by-step explanation:

Given

Selling price $S.P.=\ 2.55$

Cost price $C.P.=\ 1.95$

we know marked up price is

$C.P.+markup=S.P.$

Markup$=2.55-1.95=\ 0.6$

So markup according to cost price

$\Rightarrow \frac{0.6}{1.95}\times 100=30.76\ \%$

Markup according to the selling price

$\Rightarrow \frac{0.6}{2.55}\times 100=23.52\ \%$