Question

At Walmart, a Panasonic stereo is marked up 25% based on selling price. What is the corresponding percent markup based on cost? Round to the nearest tenth of a percent.

Answer 1

I know it has something to do with multiplying @abb

Answer 2

I meant @abbiecal

Answer 3

I think the attachment will assist our thinking about this problem.

Answer 4

There is not enough information given to answer this question.

Answer 5

@Directrix Do you agree?

Answer 6

I'm thinking that the markdown would be 20%.

Answer 7

Assume: Item cost $1
stereo is marked up 25% --> $1.25

corresponding percent markup based on cost:

(1- 1.25)/(1.25) = - .2 = - 20%

20% mark down is just a conjecture.

Answer 8

There is no way to reference the level of cost to the selling price.
Let the selling price = s
The amount of mark up = s * (25/100) = s/4
Let the cost price = c
Then the percentage mark up based on cost is\[\frac{\frac{s}{4}}{c}\times 100=\frac{s}{4c}\times 100=\frac{100s}{4c}\]

Answer 9

@Directrix My bad in previous postings. The problem can be solved with the given information.
Let the selling price = S
The mark up of 25% of S gives an amount S/4.
Therefore the cost price = S - S/4 =(3S)/4
The percentage mark up based on the cost price is
\[\frac{\frac{S}{4}}{\frac{3S}{4}}\times 100=\frac{S}{4}\times \frac{4}{3S}\times 100=\frac{100}{3}\%\]

Answer 10

@kropot72 I agree.

Answer 11

@Directrix Many thanks for your input :)

Answer 12

@kropot72 I couldn't resist writing it out using that formula. :)