A seller buys an item from a manufacturer for 9,500. He increases the cost by 5%. What is the markup value?
Mathematics · Middle School · Tue Nov 03 2020
Answered on
Given the statement:
A seller buys an item from a manufacturer for 9,500. He increases the cost by 5%.
Determine the markup value.
A markup value is the difference between the product's selling price after a percentage increase and the original price.
Solution:
Since we are given the percentage, we must convert it first into decimal. In order to do so we divide it by 100, hence in converting a decimal into fraction, we multiply it by 100.
=5/100
= 0.05
Multiply 0.05 with the original price, then add the product to the original price again in order to find the new price cost.
= (0.05)(9,500)
=475
New price cost = 9500 + 475
New price cost = 9975
The markup value of the item is 5% of the original cost which is 475.