Please Help. I have worked and worked on this and just don't seem to undertand what I am suppose to do.
Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $115 for a comforter. Misu Sheet wants to advertise the comforter as "percent markup on cost."
a. What is the equivalent rate of percent markup on cost compared to the 20% markup on selling price? (Round your answer to the nearest hundredth percent.)
Rate of percent
Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $120 for a comforter. Misu Sheet wants to advertise the comforter as "percent markup on cost."
a. What is the equivalent rate of percent markup on cost compared to the 30% markup on selling price?
To find the equivalent rate of percent markup on cost compared to the 20% markup on the selling price, we can use the formula:
Percent Markup on Cost = (Percent Markup on Selling Price) / (100 + Percent Markup on Selling Price)
In this case, the Percent Markup on Selling Price is 20%.
So, let's plug that into the formula:
Percent Markup on Cost = (20) / (100 + 20)
Percent Markup on Cost = (20) / (120)
Now, we can calculate the equivalent rate of percent markup on cost:
Percent Markup on Cost = 0.1667...
If we round it to the nearest hundredth percent, it becomes:
Percent Markup on Cost = 16.67%
Therefore, the equivalent rate of percent markup on cost compared to the 20% markup on selling price is 16.67%.