You own a small clothing shop and decide to sell a line of dresses for prom. You will pay $104.00 for each dress. You need to calculate a markup price before selling it to the customer. Your closest competitor is selling similar dresses for $305.95 . You want to stay under that cost to get customers to buy from you. You decide you won't charge more than $295.99 . What will your markup, or percent increase, be?

Question

You own a small clothing shop and decide to sell a line of dresses for prom. You will pay $104.00 for each dress. You need to calculate a markup price before selling it to the customer. Your closest competitor is selling similar dresses for $305.95 . You want to stay under that cost to get customers to buy from you. You decide you won't charge more than $295.99 . What will your markup, or percent increase, be?

A. 84.61%
B. 184.61%
C. 191.99%
D. 64.86%

Answer 1

Markup price = Selling price - Cost price

Markup price = $295.99 - $104.00
Markup price = $191.99

Percent increase = (Markup price / Cost price) * 100
Percent increase = ($191.99 / $104.00) * 100
Percent increase = 184.61%

Therefore, the correct answer is:

B. 184.61%