If the selling price for a product is $4/kg, and the Rate of Markup on Cost is 40%.
What is the selling price? and the amount of Markup?
My apologies!! my question is
What is the cost price, and the amount of markup
nope
oops - my bad
1.40c = 4.00
c = $2.86
markup = $1.14
To find the selling price and the amount of markup, we need to understand the concept of markup and how it's calculated. Markup is the amount added to the cost price of a product to determine the selling price.
Let's break down the given information:
Selling Price: $4/kg
Rate of Markup on Cost: 40%
Step 1: Convert the rate of markup into a decimal.
40% = 40/100 = 0.40
Step 2: Calculate the cost price.
Cost price = Selling price / (1 + Rate of Markup)
Cost price = $4 / (1 + 0.40) = $4 / 1.40 = $2.8571 (rounded to four decimal places)
Step 3: Calculate the amount of markup.
Amount of markup = Cost price x Rate of Markup
Amount of markup = $2.8571 x 0.40 = $1.1429 (rounded to four decimal places)
Step 4: Calculate the selling price.
Selling price = Cost price + Amount of markup
Selling price = $2.8571 + $1.1429 = $4 (rounded to two decimal places)
So, the selling price is $4/kg, and the amount of markup is $1.1429/kg.
1.40 * 4 = $5.60/kg
.40 * 4 = $1.60