The markup cost is $84 if the selling price of an item is $720. It is marked down by 30%, but this sale price is still marked up from the cost of $420.
What is markup price?
Markup pricing is the practice in which the price of products or commodity is determined by taking all the goods together and adds a fraction as a markup.
We have:
The selling price of an item is $720. It is marked down by 30%
[tex]\rm = 720\times \dfrac{30}{100}[/tex]
Markdown = 216
Now subtract it from the selling price:
= 720-216
Sale price = 504
Now,
= 504-420
Markup cost = $84
Thus, the markup cost is $84 if the selling price of an item is $720. It is marked down by 30%, but this sale price is still marked up from the cost of $420.
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