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

Question

a. 20.0 percent
b. 28.6 percent
c. 16.7 percent
d. 75.0 percent
e. 60.0 percent

Answer 1

b. 28.6 percent

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

Percentage Markup on Cost = (Markup on Price / (100 + Markup on Price)) * 100

Plugging in the values, we get:

Percentage Markup on Cost = (37.5 / (100 + 37.5)) * 100 = (37.5 / 137.5) * 100 ≈ 28.6 percent

Therefore, the correct answer is b. 28.6 percent.