Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $155 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.)
Well, if we want to find the equivalent rate of percent markup on cost for a 20% markup on selling price, we'll need to do a little math.
First, let's assume the cost of the comforter is "C" dollars. The selling price, including the 20% markup, would be C + 0.20(C) = C + 0.2C = 1.2C.
Now, we know that the customers are willing to pay no more than $155, so we can set up the following equation:
1.2C = 155
To find C, we can divide both sides of the equation by 1.2:
C = 155 / 1.2
Calculating that gives us C ≈ 129.17.
Now, we can find the percent markup on cost by comparing the markup (which is 1.2C - C = 0.2C) to the cost (which is C).
So, the percent markup on cost is (0.2C / C) × 100:
(0.2 × 129.17 / 129.17) × 100 ≈ 0.2 × 100 ≈ 20
Therefore, the equivalent rate of percent markup on cost compared to the 20% markup on selling price is approximately 20%.
So, Misu Sheet can advertise the comforter as a 20% markup on cost.
To find the equivalent rate of percent markup on cost, we need to use the following formula:
Equivalent markup on cost = (Markup on selling price / (100 + Markup on selling price)) * 100
Given that the markup on selling price is 20%, we can substitute that into the formula:
Equivalent markup on cost = (20 / (100 + 20)) * 100
Simplifying the expression:
Equivalent markup on cost = (20 / 120) * 100
Equivalent markup on cost = 0.1667 * 100
Equivalent markup on cost = 16.67%
Therefore, the equivalent rate of percent markup on cost compared to the 20% markup on selling price is approximately 16.67%.
To find the equivalent rate of percent markup on cost, we need to convert the given percent markup on selling price to percent markup on cost.
Let's start by understanding the difference between markup on selling price and markup on cost.
Markup on selling price is the amount added on top of the cost to determine the selling price. It is usually expressed as a percentage of the selling price. For example, a 20% markup on selling price means that the selling price is 120% of the cost.
Markup on cost, on the other hand, is the amount added on top of the cost to determine the selling price. It is usually expressed as a percentage of the cost. For example, a 25% markup on cost means that the selling price is 125% of the cost.
To find the equivalent rate of percent markup on cost compared to a given percent markup on selling price, we can use the formula:
Equivalent rate of percent markup on cost = (Percent markup on selling price / (100 + Percent markup on selling price)) * 100
In this case, the given percent markup on selling price is 20%. Plugging this into the formula, we have:
Equivalent rate of percent markup on cost = (20 / (100 + 20)) * 100
Simplifying this expression, we get:
Equivalent rate of percent markup on cost = (20 / 120) * 100
Equivalent rate of percent markup on cost = 1/6 * 100
Equivalent rate of percent markup on cost = 16.67%
So, the equivalent rate of percent markup on cost compared to the 20% markup on selling price is approximately 16.67%.
if 20% of the selling price is the discount,
cost = 0.80 * 155 = 124
based on a cost of 124,
155 = 124 * 1.25
so it's a 25% markup