Question

Pete's Deli sells corned beef at $2.55 per pound. It pays its wholesaler $1.95 per pound. What is the markup rate based on A) cost and B) selling price?

Answer 1

(a) (2.55-1.95)/1.95 = 0.3076 = 30.76%
(b) (2.55-1.95)/2.95 = 0.2033 = 20.33%