Question

a manufacturer makes hand-woven scarves for $10 and then ships them to retail boutiques around the country. the boutiques sell the scarves for $25. what percent markup do the boutiques charge their customers?

Answer 1

The percentage markup do the boutiques charge their customer is 150%

Explanation:

Given as :

The price for hand woven scarves = $ 10

The price of selling by boutiques to customers = $ 25

Let The markup percentage = x

So , markup percentage =
`(selling price - cost price)/(cost price)` × 100

Here The value of selling price ( S.P ) = $ 25

And The value of cost price ( C .P ) = $ 10

So , x =
`(S.P - C.P)/(C.P)` × 100

Or , x =
`(25 - 10)/(10)` × 100

Or, x =
`(15)/(10)` × 100

Or, x = 1.5 × 100

∴ Markup = 150% of cost of sales

Hence The percentage markup do the boutiques charge their customer is 150% Answer