Quandaries and Queries Question: I am attempting to determine the Retail price of an item that costs me 11.00. Our company wants to sell it at a markup of 40%. I calculated this two ways, first the way I thought it should be done. Second, the way the calculator does it (and my accountant). Cost + Cost*(percentmarkup/100)= retail price 11.00 + 11.00*.40 = retail price 11.00 + 4.40 = 15.40 retail price Using the calculators Mark Up key the answer is 18.33. Or 7.33 more than the cost or 67%. I am confused by this Mark Up key and how it calculates. I used a cost of \$10.00 and marked it up 50%. I thought it should equal \$15.00 but the calculator says \$20.00? This seems to be 100% markup, yes? Can you explain the difference between the way I did it and the way a Business calculator does it? thanks, Nick Hi Nick, Percentages can be confusing partly because, in day-to-day language, we use the term percentage without saying percentage of what. That is precisely the problem here. You are calculating a percentage of what it cost you and your calculator is finding a percentage of what your customer will pay. The item costs you \$11.00 and your calculations will mark it up 40% of the \$11.00. Your calculator is looking at this from your customer's point of view. If your customer sees a ticket price of \$18.33 on the item and knows you paid \$11.00 and marked it up \$7.33, then he calculates \$7.33 as 40% of \$18.33. Thus your cost of \$11.00 is 60% of \$18.33. Your calculator finds the ticket price of \$18.33 as follows. 60% of the ticket price is \$11.00 and thus 0.60 ticket price = \$11.00, and hence ticket price = \$11.00/0.6 = \$18.33 I hope this helps, Penny Go to Math Central