posted by Anonymous
A clothing retailer purchased a line of fall leather coats which were priced to sell at $600 each. This price reflected a markup of 45% on the selling price. At the end of the season the retailer had three coats left, which were marked down to 25% and sold. What was the retailer's actual percentage markup on the coats that were sold at 25% off? Calculate this percentage both as a percentage of the selling price, and as a percentage of the cost price.
If the markup was 45% of the selling price, the cost was 55%, so the markup based on cost was 80%.
So, if the cost was c,
1.8c = 600
c = 333.33
The sale price was 75% of 600, or 450.
So, the markup was 116.66
the sale price of 450 is thus a markup of
50% of cost
26% of selling price