Business Math
A furniture store sells recliners at a 70% mark-up (based on price). If the recliner costs the store $240, what price will they charge?
Formula:
%Markup on cost=%markup on selling price/100% - % markup on selling price
x = 70%/100%-70%
x = 70%/30%
x = 233.333%
cost $240 x (233.33%) = $800
???????????????
Does this seem right?
Reply
Answers
No, this does not seem correct. Markup is not calculated as a percentage of the cost, but as a percentage of the selling price. The formula to calculate the markup on selling price is: %Markup on selling price=%markup on cost/100% + % markup on cost x = 70%/100% + 70% x = 140% Therefore, the selling price of the recliner will be $240 x (140%) = $336.
