Question

The percent markup on a video game is known to be 108% based on cost. If the seller paid $35 for one, then what would be the corresponding percent markup based on the sale price? (Round to the nearest tenth percent)

Answer 1

Answer: 48.1%

Step-by-step explanation:

The percent markup is defined as:

PM = (gross benefit/cost per unit.)*100%

We know that the cost per unit is $35

then we have:

108% = (gross benefit/$35)*100%

gross benefit = (108%/100%)*$35 = $37.8

This means that a game is selled by $35 + $37.8 = $72.8

Now we have:

Markup percent = (gross benefit/selling price)*100% = ($35/$72.8)*100% = 48.1%