Martha buys tennis rackets for $45. She marks them up 225% before selling them in her sport shop. What is the retail price of the tennis racket?

Question

 Martha buys tennis rackets for $45. She marks them up 225% before selling them in her sport shop. What is the retail price of the tennis racket?

Answer 1

So Martha is selling rackets at $45 each.  They have been marked up 225%.  This means that the rackets are actually selling for 325% of the original value.  Remember that a markup percent does not take into account the original 100% value, thus you need to add 100% to it.

 

Now we just need to divide 45 by 3.25 (decimal form of 325%) and we'll get our answer:

45 / 3.25 = $13.85

 

So Martha is marking up rackets from 325% from the original price of $13.85 to $45.

 

I hope this helps!