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?

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Feb 25, 2013

Cost and Markup
by: Staff

Answer

Part I

Since your problem expresses the percent markup as "markup-on-selling-price", we will use the following formula:

$Math – formula for Markup on Selling Price$

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 %.

$Math – percent Markup, solve for cost - step A$