Business Mathhhh

Question

If a grocery store’s rate of markup on the selling price of tomatoes is 55%, what is the rate of markup on the cost of tomatoes?

Answer 1

The formula that you want to use to convert this one over is

Markup on Cost = (Markup on Selling Price) / (1 - Markup on Selling Price)

For this scenario that means taking

0.55 / (1 - 0.55) = 0.55 / 0.45 = 1.2222, meaning that the rate of markup on the cost of tomatoes is approximately 122.22%