Business Math problem question

Question

Wong Co. buys a pair of jeans at a cost of $60 .00. Wong plans to sell the jeans for $79.00. What is the dollar markup as well as percent markup on cost. Round to the nearest hundredth percent.

Answer 1

Wong Co. buys for $60, sells for $79.00

 

Dollar mark-up = price increase = difference in prices = (selling price - buying price) 

• (Selling price - buying price) = $79 - $60 = $19

 

Percent mark-up on cost = the percentage in which the buying price ($60) has increased by in order to reach the selling price of $79

• From the dollar mark-up answer, we know that our price has increased by $19
• Now we need to know what percentage of $60 is equal to $19
• (? %)x($60) = $19
• to solve for the percentage, we need to isolate it (get it on a side by itself)
• (%) = $19/$60
• .3167 (they asked us to round to nearest hundredth place)
• .3167 as a percentage is 31.67% (.3167 x 100)
• Percent mark-up on cost = 31.67%