Question

Fonterra charges a 40% markup on milk supplies for dairy stores. A grocery store charges a 25% markup on milk bought from Fonterra. How much, in percentage, has the original price been increased?

Answer 1

Answer:

It receives a markup for 75% above the original price.

Explanation:

From the dairy store we must multiply the fonterra markup and the grocery store markup as the grocery store do not know the dairy price It mperforms his markup from Fonterra's prices.

dairy stores x ( 1 + 40% ( 1 + 25%) = final consumer selling price

dairy stores x (1  +  75% ) = final consumer selling price