Question

part 1. With a 25% mark up on selling price and a cost of $270, what is the selling price?

part 2. If the mark up on a product is 80% of selling price, what is the equivalent markup on cost?

part 3. With a product cost of $6, what should the selling price be to produce a 20% markup on selling price?

part 4. If a product now selling for $1000 was first marked up by the seller 50% on cost, what did the product         originally cost the seller?

Answer 1

1) Let say selling price 100%, profit 25% cost 75%

.i.e., 75% - $270, 100% - ?

Selling price = ($270*100/75)

Selling price = $360

2) Let say selling price 100%, profit 80% cost 20%

.i.e., (80/20)*100 = 400%

Equivalent mark up on cost = 400%

3) Let say selling price 100%, profit 20% cost 80%

.i.e, 80% - $6, 100% - ?

Selling price = (6*100%)/80%

Selling price = $7.5

4) Let say cost 100%, profit 50% selling price 150%

.i.e., 150% - $1,000 , 100% - ?

Cost = ($1,000*100%)/150%

Cost = $667