A retailer buys a product for $150 and sells it for $180. What is the markup per

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Question: A retailer buys a product for $150 and sells it for $180. What is the markup percentage?

Options:

Correct Answer: 20%

Solution:

Markup = Selling Price - Cost Price = 180 - 150 = $30. Markup Percentage = (Markup / Cost Price) * 100 = (30 / 150) * 100 = 20%.

A retailer buys a product for $150 and sells it for $180. What is the markup percentage?

A retailer buys a product for $150 and sells it for $180. What is the markup percentage?

Step 1: Identify the cost price of the product. In this case, the cost price is $150.
Step 2: Identify the selling price of the product. Here, the selling price is $180.
Step 3: Calculate the markup by subtracting the cost price from the selling price. So, $180 - $150 = $30.
Step 4: To find the markup percentage, divide the markup by the cost price. This means $30 divided by $150.
Step 5: Calculate the division: 30 / 150 = 0.2.
Step 6: Convert the decimal to a percentage by multiplying by 100. So, 0.2 * 100 = 20%.
Step 7: The markup percentage is 20%.

Markup Calculation – Understanding how to calculate the markup amount and the markup percentage based on cost price and selling price.
Percentage Calculation – Applying the formula for percentage to find the markup percentage from the markup amount.