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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

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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




Solve for the Cost.

Divide each side of the equation by 100

Math – percent Markup, solve for cost - step C






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Feb 25, 2013
Cost and Markup
by: Staff


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Part II

Multiply each side of the equation by 175.00

Math – percent Markup, solve for cost - step D





Add the Cost to each side of the equation

Math – percent Markup, solve for cost - step E




Subtract 87.5 from each side of the equation

Math – percent Markup, solve for cost - step F





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Feb 25, 2013
Cost and Markup
by: Staff


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Part III


Use the following formula to solve for the Markup Amount

Math – Markup Amount, formula




Substitute $175.00 for the Selling Price and $87.50 for the Cost.

Math – Markup Amount, calculate - a




Calculate the Markup Amount

Math – Markup Amount, calculate - b




The final answer is:

Math – Markup %, Cost, and Markup Amount, final







Thanks for writing.

Staff
www.solving-math-problems.com



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