Mathematics
Grade-7
Easy
Question
A golf store pays its wholesaler $100 for a certain club and sells it to a golfer for $175. The mark-up is _________ %.
- 20
- 75
- 35
- 25
Hint:
Mark up means value added to the original value. In terms of goods, it’s the value added to the cost price. It is added to gain a profit. A percentage markup is a percent increase in the original value. In the given question, it is given that a golf store pays its wholesaler $100 for a club. It means the cost price of the club is $100. The store sells the club to the golfer for $175. It means the selling price of the club is $175. We have to calculate the percent markup that is an increased percentage of the cost price.
The correct answer is: 75
The cost price of the club is $100 and selling price is $175.
We have to find the percent mark-up for given question. Mark up means quantity added to the cost price.
The formula for markup is
Markup = selling price – cost price
But in this example we have to find mark-up percentage. It means increase in percentage of the original cost of the club.
The formula for markup percentage is given by
We will substitute the value of mark-up in this equation.
Now we have formula to calculate the mark-up percentage. We have both the value of selling price and cost price of the club.
Cost price = 100
Selling price = 175
.We will substitute the following values in the above equation.
After solving the above equation we get value of percent mark-up of 75% for the golf club.
Therefore, option (b), which is '75%' is the right option.
We have to be careful about the cost price and selling price. If selling price is greater than cost price, it means we are getting mark-up.
