You are having a lemonade stand and the ingredients to make lemonade comes out to about $.08 per cup. If you sell each cup for $.75 by what percentage did you markup a cup of lemonade?

Question

You are having a lemonade stand and the ingredients to make lemonade comes out to about $.08 per cup.  If you sell each cup for $.75 by what percentage did you markup a cup of lemonade?

Reiny · Answer

profit per cup = .75 - .05 = .67 markup = .67/.08 = 8.375 = 837.5% or .75/.08 = 9.375 percentage markup = 9.375 - 1 = 8.375 = 837.5%