Quandaries
and Queries
If a product cost $2.00 and sells for $2.00 there is 0% markup
If a product cost $2.00 and sells for $4.00 there is a 100% markup
If a product costs $2.00 and sells for $6.00 there is a 200% mark up ------which I don't understand I would think that the markup would be 300%
If a product costs $2.00 and sells for $8.00 there is a 300% mark up---- " " " " " " " " " " 400%
Please advise
Dan
student
Dan,
The mark up $8.00 - $2.00 = $6.00 which is 300% of $2.00 even though the selling price $8.00 is 400% of the cost $2.00
Often I have noticed that people find that things explained in simple numbers are much more easy to understand than percentages, yet there is a persistent habit of explaining everything in percentages in the news (The life expentancy in the province is 1.8 percent lower than the national life expectancy of 78.4 years; the unemployment rate of 10% decreased by 3% over the summer; ... ) and in stores (all our merchandise is 20% off; our selling price for this item is $8.99, plus the 15% tax that applies to this product as the customer is supposed to know, and then compute mentally by him/herself; ...).
Claude
