Question

I sell shoes for $250 per pair. They cost me $25 to produce. My markup on cost is:______
A. $2
B. 9096
C. 900%
D. None of the above.

Answer 1

Answer:

Markup percentage= 900%

Explanation:

Giving the following information:

I sell shoes for $250 per pair. They cost me $25 to produce.

To calculate the markup percentage, we need to use the following formula:

Markup percentage= [(selling price - unitary cost)/unitary cost]*100

Markup percentage= [(250 - 25)/25]*100

Markup percentage= 900%