Find the markup rate.

Question

A grocer purchases a can of fruit juice for $1.60. The selling price of the fruit juice is $1.92. Find the markup rate.

Answer 1

1.92 is what percent of 1.60?  Whatever part over 100% will be the answer:

 

1.92 = (x/100)1.60

 

x = 1.92(100)/1.6

 

x = 120%

 

1.92 is 120% of 1.60 so the mark up is 20%

 

Check:  1.2(1.60) = 1.92

Answer 2

The markup rate is the percent of the cost that the item is marked up.

Because the item is selling at 1.92, but cost 1.60, the markup is 1.92 - 1.60 = .32

Now, to find the markup rate, you need to find the percent of the original price that equals .32.

Let's call the markup rate X

1.60X = .32

X = .20 or 20%