Question

A car seller buys a car from a manufacturer for $10,000. He increases the cost by 5 percent. What is the markup amount? markup = original cost × percentage markup

Answer 1

The markup amount of the car is

Step-by-step explanation:

Answer 2

The markup amount of the car is
`500\`

Step-by-step explanation:

Markup is the amount added to the cost price of the goods to cover the profit and overhead or it is the difference between selling price and cost price of the goods or services.

Given that, the cost price of the car is
`10000\`

The percentage increase on the cost price is
`5\%`

Here the formula for the markup amount is given by,

`markup = original cost* percentage markup`

On substituting the values we get, markup = 10000\times5\%

`=>`
`10000*(5)/(100)`
`= 5*100`

Therefore, the markup amount is 500.