Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more th
ID: 2633573 • Letter: M
Question
Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $100 for a comforter. Misu Sheet wants to advertise the comforter as "percent markup on cost."
a.
What is the equivalent rate of percent markup on cost compared to the 37% markup on selling price?(Round your answer to the nearest hundredth percent.)
Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $100 for a comforter. Misu Sheet wants to advertise the comforter as "percent markup on cost."
Explanation / Answer
Selling price = 100 ; Markup selling price = 37% x Selling price = 100 x 37% = 37
Markup % on cost = Markup on selling price / (Selling price - Markup on selling price)
Markup % on cost = 37 / (100 - 37)
Markup % on cost = 59%