A toy store orders jigsaw puzzles for $3 and sells them for $4.50. What is the percent of markup? Round your answer to the nearest tenth of a percent, if necessary.

A) 20%
B) 33.3%
C) 50%
D) 66.7%

Question

A toy store orders jigsaw puzzles for $3 and sells them for $4.50. What is the percent of markup? Round your answer to the nearest tenth of a percent, if necessary.

A) 20%
B) 33.3%
C) 50%
D) 66.7%

jim_thompson5910 · Answer

First off, what is the profit?

anonymous · Answer

....

jim_thompson5910 · Answer

Profit = (Amount Sold) - (Cost)

jim_thompson5910 · Answer

For example, say you are a merchant and you buy a table for $100. Then you sell that table for $120. The profit would be...

Profit = (Amount Sold) - (Cost)

Profit = (120) - (100)

Profit = 20 dollars

anonymous · Answer

oh ok

jim_thompson5910 · Answer

So what is the profit in this case?

jim_thompson5910 · Answer

How much money does this merchant make from selling one puzzle?

anonymous · Answer

4.5-3=1.5

jim_thompson5910 · Answer

good

jim_thompson5910 · Answer

now divide that profit by the initial amount 3

1.5/3 = 0.5

Then multiply that result by 100 to convert it to a percentage

0.5*100 = 50%

So the markup is 50%

jim_thompson5910 · Answer

Notice how $1.50 is 50% of $3

So putting a 50% markup means that the seller earns back the full cost (of $3) and earns an extra 50% of the cost (which is $1.50)