Question

A car seller buys a car from a manufacturer for $8,000. He increases the cost by 6 percent. What is the markup value?

A.
$400
B.
$480
C.
$4,800

Answer 1

Markup means that the new cost is the same cost plus the percent of the original that's marked up. You can either take 6% of $8,000 and add it to $8,000, or multiply 1.06($8,000). That will get you to your answer.