Business Mathematics: Selling - Markup In General

In order to make a profit, each company must sell its products for more than the products cost the company to make or buy.

The difference between a product’s cost and selling price is referred to as markup.


Example
A washing machine selling for $300 costs the seller $200.

The markup is

Solved Problems

9.1 Find the markup if (a) cost is $15 and selling price is $27, (b) cost is $30 and selling price is $42.65, and (c) cost is $21.50 and selling price is $52.87.
 

Solution


9.2 If Johnson Sporting Goods, Ltd. sells a tent for $89.99 and their cost is $52.40, what is the markup?
 

Solution


9.3 Reed Stereo purchased cassette tapes for $2.95 each. If they sell them for $7.95, what is the markup?
 

Solution


9.4 What is the markup on an automobile that sells for $7,958 and costs the dealer $4,621.98?
 

Solution


9.5 Shim. Inc. decides to sell lawn chairs for $28.47. They paid $15.25 for each chair. What is the markup?
 

Solution