If the markup of a fluorescent light fixture transformer is 120% based on the cost, what is the corresponding percent markup based on selling price? (Round percent to the nearest tenth.)
To find the corresponding percent markup based on selling price, we need to consider the relationship between cost, selling price, and markup.
Let's start by defining the terms:
The cost is the amount the retailer pays to purchase the fluorescent light fixture transformer.
The selling price is the price at which the retailer sells the fluorescent light fixture transformer to the customer.
The markup is the difference between the selling price and the cost.
The markup based on cost is given as 120%. This means that the markup amount is 120% of the cost.
To find the corresponding percent markup based on selling price, we need to determine the markup as a percentage of the selling price.
Here's the formula to calculate the markup based on selling price:
Markup based on selling price = (Markup based on cost / Cost + Markup based on cost) * 100
Let's substitute the known values into the formula:
Markup based on selling price = (120 / (100 + 120)) * 100
Now let's solve this equation step by step:
Markup based on selling price = (120 / 220) * 100
Markup based on selling price = 0.545454545 * 100
Markup based on selling price = 54.545454545
Rounded to the nearest tenth, the corresponding percent markup based on selling price is 54.5%.
To find the corresponding percent markup based on selling price, we need to understand the relationship between cost, selling price, and markup.
Let's assume the cost of the fluorescent light fixture transformer is $100.
The markup based on cost is given as 120%, which means the markup amount is 120% of the cost:
Markup based on cost = Markup percentage * Cost = 120% * $100 = $120
The selling price is calculated by adding the markup amount to the cost:
Selling price = Cost + Markup amount = $100 + $120 = $220
To find the corresponding percent markup based on selling price, we need to determine the markup relative to the selling price.
Markup based on selling price can be calculated using the formula:
Markup based on selling price = (Markup amount / Selling price) * 100%
Substituting the values:
Markup based on selling price = ($120 / $220) * 100
Calculating the value using a calculator:
Markup based on selling price = 0.5454545454545454 * 100 ≈ 54.5
Therefore, the corresponding percent markup based on selling price is approximately 54.5%.