Question
20. YOU BE THE TEACHER The cost to a store for an MP3 player is \( \$ 60 \). The selling price is \( \$ 105 \). A classmate says that the markup is \( 175 \% \) because \( \frac{\$ 105}{\$ 60}=1.75 \). Is your classmate correct? If not, explain how to find the correct percent of markup.
Ask by Turner Little. in the United States
Feb 28,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The correct percent markup is 75%, not 175%.
Solution
The classmate's calculation incorrectly compares the selling price to the cost, rather than comparing just the increase (or markup) to the cost.
Step 1: Find the markup amount.
Markup = Selling Price – Cost = $105 – $60 = $45
Step 2: Calculate the percent markup.
Percent Markup = (Markup / Cost) × 100% = ($45 / $60) × 100% = 0.75 × 100% = 75%
Thus, the correct percent markup is 75%, not 175%.
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Simplify this solution The Deep Dive
Your classmate is not correct! To find the correct percent of markup, you need to first calculate the markup amount by subtracting the cost from the selling price: \( \$ 105 - \$ 60 = \$ 45 \). Then, divide the markup by the cost and multiply by 100 to get the percentage: \( \frac{45}{60} \times 100 = 75\% \). So, the correct markup is actually 75%, not 175%. Now, here’s a little fun twist: think of markup as the "extra sprinkle" on your ice cream! If the base scoop (cost) is \( \$ 60 \) and you add \( \$ 45 \) worth of delicious toppings (markup) before charging \( \$ 105 \), your toppings make for a 75% increase, giving you a tasty treat without going overboard!
