Mathematics

Grade-7

Easy

Question

# A golf store pays its wholesaler $100 for a certain club and sells it to a golfer for $175. The mark-up is _________ %.

- 20
- 75
- 35
- 25

Hint:

### Mark up means value added to the original value. In terms of goods, it’s the value added to the cost price. It is added to gain a profit. A percentage markup is a percent increase in the original value. In the given question, it is given that a golf store pays its wholesaler $100 for a club. It means the cost price of the club is $100. The store sells the club to the golfer for $175. It means the selling price of the club is $175. We have to calculate the percent markup that is an increased percentage of the cost price.

## The correct answer is: 75

### The cost price of the club is $100 and selling price is $175.

We have to find the percent mark-up for given question. Mark up means quantity added to the cost price.

The formula for markup is

Markup = selling price – cost price

But in this example we have to find mark-up percentage. It means increase in percentage of the original cost of the club.

The formula for markup percentage is given by

We will substitute the value of mark-up in this equation.

Now we have formula to calculate the mark-up percentage. We have both the value of selling price and cost price of the club.

Cost price = 100

Selling price = 175

.We will substitute the following values in the above equation.

After solving the above equation we get value of percent mark-up of 75% for the golf club.

Therefore, option (b), which is '75%' is the right option.

We have to be careful about the cost price and selling price. If selling price is greater than cost price, it means we are getting mark-up.