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The mark-up percentage is a common term used in retail to determine the profit made on a product. In this example, a store employee has created a display of model railroad sets priced at $94 each, while the store initially purchased them for $50 per set. To calculate the mark-up percentage, simply subtract the cost price from the selling price, then divide the result by the cost price and multiply by 100. Using this formula, the mark-up percentage for the model railroad sets in this scenario would be 88%. It's fascinating to see the difference in price between the cost and the selling price, showcasing the mark-up percentage as a key figure in determining profitability for businesses.
