The percent markup on a video game is known to be 108% based on cost. if the seller paid $35 for one, then what would be the corresponding percent markup based on the sale price? (round to the nearest tenth percent)
The percent markup on a video game is known to be 108% based on cost. if the seller paid $35 for one, then what would be the corresponding percent markup based on the sale price? (round to the nearest tenth percent)
48.1%
Step-by-step explanation:
The percent markup is defined as:
PM = (gross benefit/cost per unit.)*100%
We know that the cost per unit is $35
then we have:
108% = (gross benefit/$35)*100%
gross benefit = (108%/100%)*$35 = $37.8
This means that a game is selled by $35 + $37.8 = $72.8
Now we have:
Markup percent = (gross benefit/selling price)*100% = ($35/$72.8)*100% = 48.1%