Please check my answer thanks.
1. Convert a 30 % markup percent on the cost to markup percent on the selling price. Round to the nearest hundredth percent.
A. 25.08 %
B. 13.08%
C. 23.08%
D. 13.80%
I got B. 13.08%
Illustrate with an example.
Suppose you have a cost price of $100
markup based on cost of 30% gives you a selling price of $130 and
a profit of $30
what is that based on the selling price ?
30/130 = .2308 or 23.08%
To convert a markup percentage on the cost to a markup percentage on the selling price, you can use the following formula:
Selling price markup percentage = Cost markup percentage / (1 - Cost markup percentage)
In this case, the cost markup percentage is 30%. Plugging this value into the formula:
Selling price markup percentage = 30% / (1 - 30%)
Selling price markup percentage = 30% / (1 - 0.30)
Selling price markup percentage = 30% / 0.70
Selling price markup percentage = 42.8571%
Rounding this to the nearest hundredth percent, the answer is A. 25.08%.
Therefore, your answer of B. 13.08% is incorrect.
To convert a markup percent on the cost to a markup percent on the selling price, you can use the formula:
Markup Percent on Selling Price = (Markup Percent on Cost / (1 + Markup Percent on Cost)) * 100
In this case, the given markup percent on the cost is 30%. Plugging this value into the formula, we have:
Markup Percent on Selling Price = (30% / (1 + 30%)) * 100
= (0.30 / 1.30) * 100
= 0.2308 * 100
= 23.08%
Thus, the correct answer is C. 23.08%.