A markup on price of 37.5 percent is equivalent to what percentage markup on cost?

1 answer

To find the percentage markup on cost, we can use the formula:

Percentage Markup on Cost = (Markup on Price / (1 + Markup on Price)) x 100

Given that the markup on price is 37.5 percent, we can plug this into the formula:

Percentage Markup on Cost = (0.375 / (1 + 0.375)) x 100
Percentage Markup on Cost = (0.375 / 1.375) x 100
Percentage Markup on Cost = 0.273 x 100
Percentage Markup on Cost = 27.3 percent

Therefore, a markup on price of 37.5 percent is equivalent to a 27.3 percent markup on cost.