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| Math Central | Quandaries & Queries |
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Subject: % MARKUP 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?? |
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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