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%; 12%
B)33%; 25%
C)12.5%; 15.6%
D)12%; 16.7%
E)15%; 10.5%

Question

Quizplus · Accepted Answer

To calculate markup as a percentage of cost:

Markup = Selling price - Cost price
Markup = $54 - $45
Markup = $9

Markup percentage = (Markup/Cost price) x 100
Markup percentage = ($9/$45) x 100
Markup percentage = 20%

To calculate markup as a percentage of selling price:

Markup percentage = (Markup/Selling price) x 100
Markup percentage = ($9/$54) x 100
Markup percentage = 16.7%

Therefore, the best choice is D: 12%; 16.7%.

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