If a product costs $80 to produce and is sold for $120, what is the markup perce

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Question: If a product costs $80 to produce and is sold for $120, what is the markup percentage?

Options:

Correct Answer: 33.33%

Solution:

Markup percentage is calculated as (selling price - cost) / cost * 100. Thus, ($120 - $80) / $80 * 100 = 50%.

If a product costs $80 to produce and is sold for $120, what is the markup percentage?

If a product costs $80 to produce and is sold for $120, what is the markup percentage?

Step 1: Identify the cost of the product. In this case, the cost is $80.
Step 2: Identify the selling price of the product. Here, the selling price is $120.
Step 3: Calculate the difference between the selling price and the cost. This is $120 - $80.
Step 4: Perform the subtraction: $120 - $80 = $40.
Step 5: Now, divide the difference ($40) by the cost ($80). This is $40 / $80.
Step 6: Perform the division: $40 / $80 = 0.5.
Step 7: To find the markup percentage, multiply the result (0.5) by 100. This is 0.5 * 100.
Step 8: Perform the multiplication: 0.5 * 100 = 50.

Markup Percentage – Markup percentage is the difference between the selling price and the cost price, expressed as a percentage of the cost price.