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 Math Central Quandaries & Queries
 Subject: % MARKUP Name: LAUREN Who are you: Other MY DAD IS TRYING TO SELL PRODUCTS AT A 40% MARKUP. LET'S SAY THE COST IS $55.00. SHOULDN'T YOU JUST DO, 55 X 1.4 = 77 , SO THE$77 IS THE 40% MARKUP?? HE'S SAYING THAT YOU TAKE 55 / 60% = 91.67 . SO WHO'S FORMULA SHOWS YOU A TRUE 40% MARKUP OF $55.00 DOLLARS?????? Hi Lauren, When we use the term percentage we should always say percentage of what. Here is what I see in your question cost list price markup Lauren$55.00 $70.00$15.00
Lauren's dad $55.00$91.67 $36.67 In your calculation the markup,$15.00, is 40% of the cost. In your dad's calculation the markup, \$36.67, is 40% of the list price. Both points of view are valid but you should be clear to your customers which you are using.

Penny

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