A furniture company buys a sofa for 1200 and sells the sofa

A furniture company buys a sofa for $1,200, and sells the sofa for $1,600. What is the percent markup on cost? What is the percent markup on the selling price

Solution

we are given

selling price = $1600

cost price =$1200

gain = selling price - cost price

gain=1600-1200

gain=$400

(A)

mark up percent on cost = (gain/cost price)*100

mark up % on cost = (400/1200)*100=(1/3)*100=33.33%

mark up % on cost = 33.33% ...........Answer

(B)

mark up percent on selling price = (gain/selling price)*100

mark up % on selling price = (400/1600)*100=(1/4)*100=25%

mark up % on selling price = 25% ...........Answer