A Honda Element with a dealer invoice price of $19,700 was retail priced at $23,000. How much is the approximate percent markup based on selling price?
Mathematics · High School · Wed Jan 13 2021
Answered on
Given:
A Honda Element with a dealer invoice price of $19,700 was retail priced at $23,000.
Determine the percent markup based on selling price.
Solution:
In order to determine the percent markup we simply needed to subtract 23,000 by 19,700 then divide the difference by 23,000.
= $23,000 - $19,700
= $3,300
= $3,300 / $19,700
= 0.1675
Since we are given a decimal answer, in order to convert it into percentage, we multiply the decimal by 100. Hence, in converting a percentage into decimal, we divide the percentage by 100.
= (0.1675)(100)
= 16.75%
Final answer:
= 16.75%