Question

10. The Jeans Store bought jeans from a wholesaler for $18 a pair and sold them at a What was the rate of markup based on cost? markup of 30% of the selling price. a. 30% b. 42.8% C. 36.6% d. 23.1%

Answer 1

A	B	C	D	E	F	G	H	I
2
3		Cost of purchase	$18
4		Markup	30%	of selling price
5		Let X be the selling Price then markup is X*30%.
6		Selling price will be cost plus markup.
7		X= 18+X*30%
8		or
9		X	$25.71
10
11		Thus selling price is	$25.71
12
13		Rate of markup based on cost	=(Selling Price - Cost of purchase)/Cost of Purchase
14			42.86%	=(D11-D3)/D3
15
16		Hence Rate of markup based on cost	42.86%
17		Thus the option (b) is correct.
18