Tim and Helen are hosting a bake sale The ingredients to mak

Tim and Helen are hosting a bake sale. The. ingredients to make five dozen cookies cost $9.12, and the ingredients to make one dozen cupcakes cost $9.50. All baking supplies, except ingredients, and energy costs are donated. Tim and Helen price the cookies at $1.00 each and the cupcakes at $3.50 each. What is the markup rate on the cupcakes?

Solution

Total Cost of cupcakes=$9.50

Total Earning by cupcakes=1*12*3.5=$42.00

Now First, I\'ll calculate the markup in absolute terms:

42-9.50=$32.5

Then I\'ll find the relative markup over the original price(cost), or the markup rate:

($32.5) is (some percent) of ($9.50)

32.5=(x)*(9.5)

x=32.5÷9.5=3.42105

Since x stands for a percentage, I need to remember to convert this decimal value to the corresponding percentage.

The markup rate is 342.105%