  # Algebra - Cost and Markup Amount

by Tim
(Murphysboro)

Cost and Markup

A markup is the opposite of a discount. A discount is a reduction in the selling price. It has nothing to do with cost.

A markup is the amount which is added to the cost of acquiring a product or service in order to create a profit when that product/service is sold.

Markup is the difference between the cost and the selling price.

Markup = Selling Price - Cost

Markup is the same as profit.

Markup = Profit

Cost + Markup = Selling Price

or

Cost + Profit = Selling Price

Markup is often expressed as a percentage.

% Markup-on-Cost.

Markup in % = ((Selling Price - Cost) / Cost) * 100

% Markup-on-Selling-Price.

Markup in % = ((Selling Price - Cost) / Selling Price) * 100

Find the missing numbers?

Selling price = \$175.00

markup on selling price, markup rate = 50%.

What is the cost and markup amount?

### Comments for Algebra - Cost and Markup Amount

 Feb 25, 2013 Cost and Markup by: Staff AnswerPart ISince your problem expresses the percent markup as "markup-on-selling-price", we will use the following formula: You can solve for any one of the three variables (Selling Price, Cost, or Markup %), providing you know the value of the other two variables.In this case, Selling Price and Markup % are known:Selling price = \$175.00 Markup on Selling Price, markup rate = 50%. Substitute \$175.00 for Selling Price and 50 for Markup %. Solve for the Cost.Divide each side of the equation by 100 -----------------------------------------

 Feb 25, 2013 Cost and Markup by: Staff ----------------------------------------- Part II Multiply each side of the equation by 175.00 Add the Cost to each side of the equation Subtract 87.5 from each side of the equation -------------------------------------------

 Feb 25, 2013 Cost and Markup by: Staff ------------------------------------------- Part III Use the following formula to solve for the Markup Amount Substitute \$175.00 for the Selling Price and \$87.50 for the Cost. Calculate the Markup Amount The final answer is: Thanks for writing. Staff www.solving-math-problems.com