A 33 1/3 percent markup on selling price equals a 50 percent markup on cost.

Question

Quizplus · Accepted Answer

This is true. To see why, let P be the selling price and C be the cost. A 33 1/3 percent markup on selling price means selling at 4/3 times the cost, or P = (4/3)C. A 50 percent markup on cost means selling at 1.5 times the cost, or P = 1.5C. Equating these two expressions for P, we get (4/3)C = 1.5C, which simplifies to C = 6/5C. Dividing both sides by C, we get 1 = 6/5, or 5/5 = 6/5 - 1/5, which is true. Therefore, the given statement is also true.

A 33 1/3 Percent Markup on Selling Price Equals a 50