Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller

Exercise 59

Solve for the missing numbers. Markup is based on selling price. Round dollar amounts to the nearest cent. (See Examples.)

Solving for Markup on Selling Price
To remain competitive, REI sells Body Glove Sunglasses for only $39.99. They pay $35 for each pair and calculate markup on selling price. Find the amount of markup, the percent of markup on selling price, and the percent of cost on selling price.


SOLUTION
Set up the problem.

Solve for either of the rates and subtract the result from 100, to find the other. For example, here we solve for the markup rate using the basic percent formula.

Cost as a percent of selling price can be found either by subtracting 100, - 12.5,, or by dividing the cost of $35 by the selling price of $39.99. Notice that percents are rounded to the nearest tenth of a percent.

Here, selling price is the base and is associated with 100,. The markup in this example is very low-REI will probably take a loss on these sunglasses, but managers hope the low price will bring customers into the store.
Finding Cost When Selling Price Is Base
A Kmart ® employee needs a 35, markup on selling price in order to have a markup of $5.16 on a pair of "PRO CLASSIC" Batting Gloves. How much can Kmart afford to pay for each pair of gloves?
SOLUTION
Cost as a percent of selling price is found by subtracting 35% from 100, to find 65%.

Find the selling price as follows.

Divide both sides by.35 to find the selling price.

Finally, find cost by subtracting.

The final table is shown here.

Finding Markup When Selling Price Is Given
Marilyn Westby must calculate the markup on a Wilson youth tennis racket. The selling price of the tennis racket is $15.99, and the markup is 20, of selling price. Find the markup.
SOLUTION
Cost as a percent of selling price is found by subtracting 20, from 100, to find 80,.


Solve for the missing values using P = R × B :

The markup is $3.20.
Finding Markup When Cost Is Given
Find the markup on a dartboard made in England if the cost is $27.45 and the markup is 25, of selling price.

SOLUTION
Subtract 25% from 100% to find that cost is 75% of selling price.

First, solve for selling price.

Finally:

Here is the completed table.