A radio cost a company $45 to manufacture. If it sells for $97.65, what is the percent markup based on cost.
(97.65-45)/45 = ?
To find the percent markup based on cost, we can use the following formula:
Percent Markup = ((Selling Price - Cost Price) / Cost Price) * 100
In this case:
Cost Price = $45
Selling Price = $97.65
Substituting these values into the formula, we get:
Percent Markup = (($97.65 - $45) / $45) * 100
Now, let's calculate step by step:
1. Subtract the cost price from the selling price: $97.65 - $45 = $52.65
2. Divide the result by the cost price: $52.65 / $45 = 1.17
3. Multiply this result by 100 to get the percentage: 1.17 * 100 = 117
Therefore, the percent markup based on cost for this radio is 117%.