Question

A local nonprofit organization is selling popcorn to raise money for hurricane relief. The organization paid $4 per bag for the popcorn and sold it for $5 per bag. What was the percent markup on each bag of popcorn?

Enter the correct answer in the box.

Answer 1

To calculate the percent markup on each bag of popcorn, you can use the following formula:

\[
\text{Percent Markup} = \left(\frac{\text{Selling Price} - \text{Cost Price}}{\text{Cost Price}}\right) \times 100
\]

In this case:

- Selling Price = $5
- Cost Price = $4

Now, plug in the values:

\[
\text{Percent Markup} = \left(\frac{5 - 4}{4}\right) \times 100
\]
\[
\text{Percent Markup} = \left(\frac{1}{4}\right) \times 100
\]
\[
\text{Percent Markup} = 0.25 \times 100
\]
\[
\text{Percent Markup} = 25\%
\]

Thus, the percent markup on each bag of popcorn is **25**.