If it cost $.20 to make a glass of lemonade and I sell it for $.50 what is the percentage of markup?
Do I divide 20 by 50. Then my answer is 40%. Is that right?
no, 40% is the cost
the markup is .50/.20 = 2.5
Now, selling it for 100% of the cost is no markup.
You have marked it up 1.5 times more than the cost, or 150%
To calculate the percentage of markup, you need to find the difference between the selling price and the cost price, and then divide it by the cost price.
First, subtract the cost price from the selling price:
$0.50 - $0.20 = $0.30
Then, divide the difference by the cost price:
$0.30 / $0.20 = 1.5
To express this as a percentage, multiply it by 100:
1.5 * 100 = 150%
Therefore, the percentage of markup is 150%, indicating that the selling price is 150% higher than the cost price.
To calculate the percentage of markup, you need to find the difference between the selling price and the cost price, and then express it as a percentage of the cost price.
In this case, the selling price is $0.50 and the cost price is $0.20, so the difference is $0.50 - $0.20 = $0.30.
To convert this difference to a percentage of the cost price, you divide the difference by the cost price and multiply by 100:
$0.30 / $0.20 = 1.5
1.5 * 100 = 150
Therefore, the markup percentage is 150%.
Your calculation of 20 divided by 50 equals 40% is incorrect. It seems you might have mixed up the numerator (selling price minus cost price) and denominator (cost price). The correct calculation is dividing $0.30 (selling price minus cost price) by $0.20 (cost price), resulting in 1.5 or 150%.