Answer:
a. $60, b. 42.86% c. 30%
Explanation:
Cost of the lamp = $140
Selling price = $200
a. dollar markup = Selling price - cost price = $60
b. markup percentage on cost = [tex]\frac{mark\ up}{cost\ price} \[/tex] = $60/140 = 42.86% approx
c. markup percentage on sales = [tex]\frac{mark\ up}{sales\ price}[/tex] = $60/200 = 30%
Mark up refers to the price above cost which a seller charges to cover costs and profit.
While calculating markup percentage, either cost can be taken as a base which would refer to mark up percentage on cost or else sales price can be taken as a base which is referred to as markup percentage on selling price.
