Compute the markup for the following problem.
Cost of article = $195
Retail price = $225
Percentage of markup (to the nearest tenth)=
The correct answer is 15.4
To compute the markup, we can use the formula:
Markup = Retail Price - Cost.
In this case, the cost of the article is $195 and the retail price is $225.
Therefore, the markup is:
Markup = $225 - $195
Markup = $30.
However, the question also asks for the percentage of the markup to the nearest tenth. To calculate this, we can use the formula:
Percentage Markup = (Markup / Cost) * 100.
Using the values we have:
Percentage Markup = ($30 / $195) * 100
Percentage Markup ≈ 15.4% (rounded to the nearest tenth).