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 _________ %.

  1. 20
  2. 75
  3. 35
  4. 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
    m a r k minus u p space p e r c e n t a g e space equals fraction numerator m a r k minus u p over denominator cos t space p r i c e end fraction cross times 100
    We will substitute the value of mark-up in this equation.
    m a r k minus u p space p e r c e n t a g e equals fraction numerator s e l l i n g space p r i c e minus cos t space p r i c e over denominator cos t space p r i c e end fraction cross times 100
    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.
                           m a r k minus u p space p e r c e n t a g e equals fraction numerator 175 minus 100 over denominator 100 end fraction cross times 100
space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space equals 75 over 100 cross times 100
space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space equals space 75 percent sign
    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.

    Related Questions to study

    card img

    With Turito Academy.

    card img

    With Turito Foundation.

    card img

    Get an Expert Advice From Turito.

    Turito Academy

    card img

    With Turito Academy.

    Test Prep

    card img

    With Turito Foundation.