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A gift shop owner purchases a chair for 122 and sells it for273. Determine the dollar mark-up percentage on cost.

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Final answer:

The mark-up percentage on cost for the chair is roughly 123.77%, calculated by dividing the price difference ($151) by the cost price ($122) and then multiplying by 100.

Step-by-step explanation:

The mark-up percentage on cost is calculated by taking the difference between the selling price and the cost price, then dividing that by the cost price, and finally multiplying by 100 to get a percentage. In this case, the formula we will use is: (Selling Price - Cost Price) ÷ Cost Price × 100.

To calculate the mark-up percentage for the chair:

  1. Firstly, find the difference between the selling price and the cost price: $273 - $122 = $151.
  2. Then, divide $151 by the cost price of $122: $151 ÷ $122 × 100 = approximately 123.77%.

Therefore, the dollar mark-up percentage on the cost of the chair is roughly 123.77%.

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