Markup as a percentage - Math Central

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Question from itzie:

Okay, I've tried to make sense from some of the other questions and
answers but I still don't see the answer that makes sense to me so here goes:
I need an explanation on how $15.00 / .6 = $25 is a 40% and not as one
would see it as a 60% mark up??? I don't get it.

Hi Itzie,

I am not sure of your numbers either but let me try to explain. A shopkeeper has a cost of $15.00 for an item and a selling price of $25.00 so the markup is $25.00 - $15.00 = $10.00. Now you want to express this markup as a percentage and the crucial question is, A percentage of what?

If the markup is expressed as a percentage of the storekeepers cost then its 10/15 × 100 = 66.6%
If the markup is expressed as a percentage of the selling price then its 10/25 × 100 = 40%

In what you sent I am not sure what the $15.00 and $25.00 are but I hope my explanation helps.
Penny







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