If the markup of a fluorescent light fixture transformer is 120% based on the cost, what is the corresponding percent markup based on selling price
p = c + 1.2c = 2.2c
c = .45p
so, since the cost is only 45% of the sales price, there is a 55% markup based on sales price.
To find the corresponding markup based on selling price, you need to understand the relationship between the cost, selling price, and markup.
Let's assume the cost of the fluorescent light fixture transformer is $100. In this case, a 120% markup based on the cost means an additional 120% of the cost is added to the original cost.
Markup = Markup rate × Cost
Markup = 120% × $100
Markup = $120
Now, to find the selling price, you add the cost and markup together.
Selling Price = Cost + Markup
Selling Price = $100 + $120
Selling Price = $220
Thus, the selling price of the fluorescent light fixture transformer is $220.
To calculate the corresponding markup based on selling price, you can use the following formula:
Percentage Markup on Selling Price = (Markup / Selling Price) × 100
Percentage Markup on Selling Price = ($120 / $220) × 100
Percentage Markup on Selling Price = 54.55%
Therefore, the corresponding percent markup based on selling price is approximately 54.55%.