A refrigerator costs a company $1,600 to manufacture. If it sells for $3,456, what is the percent markup based on cost? (Round to the nearest whole percent.)
(3456-1600)/1600
To find the percent markup based on cost, you need to calculate the difference between the selling price and the cost, and then express that difference as a percentage of the cost. Here's how you do it:
1. Calculate the difference between the selling price and the cost:
Markup = Selling Price - Cost
Markup = $3,456 - $1,600
Markup = $1,856
2. Calculate the percent markup based on cost:
Percent Markup = (Markup / Cost) * 100
Percent Markup = ($1,856 / $1,600) * 100
Percent Markup ≈ 116
So, the percent markup based on cost is approximately 116%.