Working off an 22% margin, with markups based on cost, the Food Co-op Club boasts that it has 5,900 members and a 245% increase in sales. The markup is 49% based on cost. What would be its percent markup if selling price were the base? (Round your answer to the nearest hundredth percent.)
Percent markup
%
27%
To find the percent markup if the selling price were the base, we need to first calculate the selling price based on the cost and markup percentage.
Given:
Margin = 22%
Markup based on cost = 49%
Number of members = 5,900
Increase in sales = 245%
To calculate the selling price, we use the formula:
Selling Price = Cost + Markup
The cost can be calculated using the margin as:
Cost = Selling Price / (1 + Margin)
Now, let's calculate the cost:
Cost = Selling Price / (1 + 0.22) (Since the margin is given as 22%)
Next, calculate the selling price using the markup based on cost:
Selling Price = Cost * (1 + Markup based on cost)
Selling Price = (Selling Price / (1 + 0.22)) * (1 + 0.49) (Since the markup based on cost is given as 49%)
Now, we have an equation involving the selling price. To solve for the selling price, we can simplify the equation. Let's rearrange the equation and solve for Selling Price:
Selling Price = Selling Price * (1 + 0.49) / (1 + 0.22)
(1 + 0.22) * Selling Price = Selling Price * (1 + 0.49)
1.22 * Selling Price = Selling Price * 1.49
Divide Selling Price from both sides:
1.22 = 1.49
We have a contradiction above, which implies that the information given in the question is inconsistent. Therefore, we cannot determine the percent markup if the selling price were the base with the given information.