Chapter 4.4.1--Markup problems Chapter 4.4.1--Markup problems ...

Chapter 4.4.1--Markup problems
Chapter 4.4.1--Markup problems
There are two basic markup equations. Usually you have to use both to answer a question
of this type.
The Equations:
S C M
M r C
where:
S represents Selling Price
C represents Cost
M represents Markup amount (in dollars)
r represents Markup Rate (usually given as a percent)
Question 5: "An electronics store uses a markup rate of 58%. Find the selling price of a
camcorder that costs the store owner $358."
Note that C 358 , and r 0.58 (Write r as a decimal.)
Then using the second equation we get M 0.58 358 207. 64
And using the first equation and this value of M we get S 358 207.64 565. 64
The selling price is $565.64
Question 6. Now you do this one: "The cost to a landscape artist for a 25 gallon tree is
$65. Find the selling price of the tree if the markup rate used by the architect is 30%."
C 65, r .3
S C M
M r C
Now fit the numbers into the two equations:
S 65 M
M .3 65 19. 5
S 65 19.5 84.5
The selling price is $84.50
© W Clarke 1 10/26/2004

Chapter 4.4.1--Markup problems
Question 17: "A markup rate of 25% is used on a computer that has a selling price of
$2187.50. Find the cost of the computer."
Note that S 2187.5 and r 0.25 .
S C M
M r C
Now fit the numbers into the two equations:
2187.5 C M
M 0.25 C
Substitute
2187.5 C 0.25C
2187.5 1.25C
Solution is: 1750. 0
Cost price is $1750
Question 16. Now you do this one: "A digitally recorded compact disc has a selling price
of $18.90. The markup rate is 40%. Find the cost of the CD."
S 18.90, r 0.40
S C M
M r C
Now fit the numbers into the two equations:
18.90 C M
M 0.40C
Substitute for M
18.90 C 0.40C
18.90 1.40C
C 18.90
1.40
C 13.50
The cost of the CD is $13.50
© W Clarke 2 10/26/2004