The rate of markup on the cost of a badminton racquet selling at $57.64 is 31%. a) What was the...

Question:

The rate of markup on the cost of a badminton racquet selling at $57.64 is 31%.

a) What was the cost of the racquet to the retailer?

b) What is the rate of markup on selling price?

Price Markup

Price Markup refers to the amount of difference between the selling price of a certain product and its purchase cost. Price Markup can also be called as the "profit" since it is about the amount of money that returned to the seller after recovering its capital from buying the same product.

Answer and Explanation:

a) What was the cost of the racquet to the retailer?

Answer: $44 ($57.64 / 131%)

b) What is the rate of markup on selling price?

Answer: 31%


Learn more about this topic:

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How to Calculate Markup: Definition & Formula

from Principles of Marketing: Help and Review

Chapter 12 / Lesson 22
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