Please help? I own a basket and bouquet company, I have two retail stores with a markup of 40% on the price of the items I sale to them. I do not understand their conversion chart and I hope you can help me.

A bouquet that I sale for $12.50 wholesale to the retail is marked up at a rate of 1.675 or (40%). I do not understand how the calculation of 1.675 is arrived at ... how is this 40%. I was told to multiply my wholesale price of $12.50 X 1.675 and I would arrive at the markup price of 40% the retailer would sale the item for. Please help ASAP.

Thank you for the time you afforded me in this matter

Amy

Hi Amy,

There's a little confusion going on in the language here and an approximation in the calculations.

If you have an item that you sell for $12.50 wholesale and then the retailer multiplies by 1.675 to get the retail price then the retail price is

$12.50 1.675 = $20.94 The retailer might see this price as made up of two pieces, $12.50 that he paid you and $20.94 - $12.50 = $8.44 which came from the markup. This $8.44 is approximately 40% of his price of $20.94

 ^8.44/_20.94 100 = 40.3%

Thus his markup of $8.44 is 67.5% of what it cost him ($12.50) but it is approximately 40% of what he sells it for ($20.94).

Hope this helps,

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