Question

Calculate the markupA retailer purchases computers for $700 and plans to sell them for $1000. What is the markup in dollars? What is the markup rate?

Answer 1

Given:

The cost price=$700.

The selling price =$1000

Required:

We need to find the markup and markup rate.

Explanation:

Consider the markup formula.

$Markup=Selling\text{ price-cost price}$

Substitute Selling price=1000 and cost price =700 in the formula.

$Markup=1000-700$$Markup=\text{ \ }300$

Consider the markup rate formula.

$Markup\text{ rate}=\frac{Sellingprice-costprice}{cost\text{ price}}\times100$

Substitute Selling price=1000 and cost price =700 in the formula.

$Markup\text{ rate}=\frac{1000-700}{700}\times100$$Markup\text{ rate}=\frac{300}{700}\times100$$Markup\text{ rate}=42.85714$$Markup\text{ rate}=42.86\text{ \%}$

Final answer:

$Markup\text{ in dollars}=\text{ \ }300$$Markup\text{ rate}=42.86\text{ \%}$