Question

What is the rate of markup based on cost if a desk has an 84% markup based on the selling price?

Answer 1

525%

Explanation:

The relationship between the variables is ...

cost + markup = selling price

cost + 84%(selling price) = selling price

cost = selling price(100% -84%) = 16%(selling price)

Then the markup based on cost is ...

markup/cost = (84%(selling price))/(16%(selling price)) = 84/16

markup/cost = 5.25 = 525%