Zoey is setting a price for her store's newest item. She purchased the item for $45 and decides to sell it for $54 using markup pricing. If she wanted to calculate the markup as percentage of cost, it would be ______________. If she wanted to calculate the markup as the percentage of the selling price, it would be ______________.
A) 16.7%; 20%
B) 33%; 25%
C) 20.5%; 15.6%
D) 20%; 16.7%
E) 15%; 10.5%

Question

Quizplus · Accepted Answer

To calculate markup as percentage of cost, we use the formula:

Markup = Selling Price - Cost Price
Markup % of Cost = (Markup / Cost Price) x 100

Using the numbers given in the problem, we get:

Markup = $54 - $45 = $9
Markup % of Cost = ($9 / $45) x 100 = 20%

To calculate markup as percentage of selling price, we use the formula:

Markup % of Selling Price = (Markup / Selling Price) x 100

Using the numbers given in the problem, we get:

Markup % of Selling Price = ($9 / $54) x 100 = 16.7%

Therefore, the answer is D) 20%, 16.7%.

Zoey Is Setting a Price for Her Store's Newest Item