Question

3. Boeing plans to increase its prices for Jetliners. With a selling price of $201.5 million and a cost of $190.1 million, what was the percent markup based on cost? Round to the nearest percent?

Answer 1

What does "markup" mean in relation to a selling price vs a cost of production?

Answer 2

I'm assuming it costs $190.1 and they sell it at $201.5 so the question is asking what is the percent it was marked up from the $190.1 to the $201.5

Answer 3

exactly. if I have 2 numbers, 10 and 5, 10 is what percent of five?

Answer 4

I have no clue I suck at math.

Answer 5

:) 10 is 200% of 5 -
5/5 = 1 -> 1*100 = 100. This shows 5 is 100% of five. Makes sense.
10/5 = 2 -> 2*100 = 200. This shows 10 is 200% of five.

If I make something for 5 dollars, and sell it for 10, my percent markup is 200% - 100% = 100%

If I make something for 5 dollars and sell it for 8, my percent markup is (8/5)*100 - 100% = 60%

Does that make sense?

Answer 6

Yes

Answer 7

So if I make something for $190.1 and sell it for $201.5.....

Answer 8

So do I divide the 201.5 by 190.1 ? then times it by 100 then subtract 100?

Answer 9

exactly. If you want to "save time," you can do it like
\[
\\ 100 \left ( \frac{201.5}{190.1} -1 \right) \]
since
\[ 100 \left( \frac{201.5}{190.1} \right) - 100 = 100 \left ( \frac{201.5}{190.1} -1 \right) \]

But that's correct!

Answer 10

so what is the final answer rounded to the nearest percent?

Answer 11

\[ 1901 \ ) \overline{2015} \]

Answer 12

-1 times 100

Answer 13

5% ?

Answer 14

6& ; you'd round up since it's 5.997 :)

Answer 15

~ 6%