



 
Hi Andrea, I think I see what is bothering you. Here is your first example.
Now your second example.
Another example.
The original price times the percentage markup is the markup amount. I think the confusion arises when the markup is 100% for in that case the markup amount and the original price are the same dollar amount. I hope this helps, Andrea wrote back Penny, Thanks from your help. The business I work at is having a problem with one area. We bought a product for 4.59 and sold it at 12.97. When i use your computation this comes out to a 183% increase.....is this right....my coworkers are saying it is 283%........they are doing 12.97/4.59 x100 and getting 283.....if you look at 4.59 to 12.97 it does look like it increases about 3 times considering 4x3 is 1200. Thanks Hi Andrea, You are correct when you say that your selling price of $12.97 is 283% of the price you bought it for, $4.59 but the term percentage markup refers to the markup, which is $12.97  $4.59 = $8.38, as a percentage of your buying price. You use the word increase and this again is the amount $8.38 and so there is a 183% increase or said another way "the increase is 183% of your buying price". Your coworkers are looking at the final price and saying that the final price is 283% of your buying price which is also correct but the increase is only 183% of your buying price. To look at another example if you bought something for $1.00 and sold it for $2.00 then this is a 100% increase. You might say the price has doubled (200%) but the increase is 100% of your buying price. I hope this helps,  


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