Lyndi has started a home business making and selling all-natural goat milk soaps. If the cost of the materials for a basic bar of soap is $2.50 and she sells each bar for $4.50, what is the markup percentage?
Mathematics · Middle School · Thu Feb 04 2021
Answered on
To calculate the markup percentage, you need to follow these steps:
1. Find the difference between the selling price and the cost price. This is called the markup. 2. Then, divide the markup by the cost price. 3. To find the percentage, multiply the result by 100.
Now, let's calculate:
1. Selling price (SP) = $4.50 Cost price (CP) = $2.50 Markup = SP - CP = $4.50 - $2.50 = $2.00
2. Markup / Cost Price = $2.00 / $2.50 = 0.8
3. Markup Percentage = 0.8 × 100 = 80%
So, Lyndi’s markup percentage on each bar of soap is 80%.