Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $110 for a comforter. Misu Sheet wants to advertise the comforter as "percent markup on cost."
a.
What is the equivalent rate of percent markup on cost compared to the 30% markup on selling price?
To find the equivalent rate of percent markup on cost compared to the 30% markup on selling price, we can use the formula:
Percent Markup on Cost = (Percent Markup on Selling Price / (100 + Percent Markup on Selling Price)) * 100
In this case, the percent markup on selling price is 30%. Plugging this value into the formula, we can calculate the equivalent rate of percent markup on cost:
Percent Markup on Cost = (30 / (100 + 30)) * 100
Percent Markup on Cost = (30/130) * 100
Percent Markup on Cost = 23.08%
Therefore, the equivalent rate of percent markup on cost compared to the 30% markup on selling price is approximately 23.08%.
To find the equivalent rate of percent markup on cost compared to the 30% markup on selling price, we need to understand the relationship between markup on cost and markup on selling price.
Markup on cost refers to how much the selling price exceeds the cost price, expressed as a percentage of the cost price. On the other hand, markup on selling price refers to how much the selling price exceeds the cost price, expressed as a percentage of the selling price.
Let's first express the 30% markup on selling price in terms of markup on cost.
Markup on cost = (Markup on selling price / (100% + Markup on selling price)) * 100%
Markup on cost = (30% / (100% + 30%)) * 100%
Markup on cost = (30% / 1.3) * 100%
Markup on cost = 23.08%
Therefore, the equivalent rate of percent markup on cost compared to the 30% markup on selling price is approximately 23.08%.