Part A Lew Devlin manufactures a handheld heart monitoring device. He sells it f

Question

Part A

Lew Devlin manufactures a handheld heart monitoring device. He sells it for $570, which represents a markup of 275% on his production cost. Lew marks it up this much to cover additional business expenses and profit as well as his product development. Find Lew's production cost and the dollar markup. The markup percent is based on cost.

Cost $______

Dollar markup $______

Part B

After Buzz Landles drove his pickup in a desert race, the truck needed a new motor. A local mechanic charged Buzz $3,834 for a rebuilt motor that had cost the mechanic $2,700. All labor was additional. Compute the dollar markup and the markup percent based on the cost of the rebuilt motor.

Dollar markup $_______

Markup Percent _______%

Explanation / Answer

Part A Selling Price                      570.00 Let Cost be x Markup is 2.75x Cost + Markup = Profit x + 2.75x = 570 3.75x =570 X = 152 2.75x = 2.75*152 = 418 Cost   = $152 Markup = $418 Part B Charges                  3,834.00 Cost                  2,700.00 $ Markup = 3834 - 2700 =1134 Markup% = 1134/2700 *100 = 42%

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects