MARKUP EXERCISES

GROUP MEMBERS:
Cardines, Clariza
Flores, Erica Mae
Ramos, Cyril May
Vega, Karla
Zoleta, Hannah Joy

1. Stan Wegner manufactures a handheld heart monitoring device. He sells it

for $840, which represents a markup of 275% on his production cost. Stan
marks it up this much to cover additional business expenses and profit as well
as product development. Find Stan’s production cost and the dollar markup.

Given:
Selling Price $840
Markup 275%
Required:
Productions Cost and Dollar Markup

Equation:
Selling Price = Cost + Markup percent
Markup = Selling Price - Cost

Solutions:
To find cost;

Step1: Apply the original formula in getting SP $840 = 1C + 2.75

Step 2: Add 1C by the markup percent of cost $840 = 3.75
Step 3: Divide both sides by 3.75 to get C $840/3.75 = 3.75/3.75
Production Cost = $224
To find markup;
Dollar Markup = $840 - $224
= $616

To check;

Markup Percentage: 100 x (Selling Price - Cost)/ Cost

= 100 x (840 - 224)/224
= 100 x 2.75
= 275%

Dollar Markup = Markup rate x Cost

= 2.75 x 224
= $616

Selling Price = Cost + Markup

= 224 + 616
= $840
2. Parkside Cyclery is a retail bicycle store. For last year’s Christmas season,
Parkside purchased one model of mountain bike to use in a Christmas
promotion. The bicycles cost $156 each. For this promotion, Parkside’s
markup was 40% of selling price. Find the selling price and the dollar markup.

Given:
Cost: $156
Markup percent 40%
Required:
Dollar Markup and Selling Price

Equation:
Dollar Markup = Markup percent x Cost or Selling price - Cost
Selling Price = Cost + Dollar Markup or (100% + Markup Percent) cost

Solutions:
Dollar Markup = 0.40 x $156
= $62.4
Selling Price = $156 + $62.4
=$218.4

Using the other formula;

Step 1: Add the markup percent to 100. 100% + 40% = 140%

Step 2: Multiply this sum by the cost to get SP 140% x $156 = $218.4
Step 3:Subtract the SP by the cost to get Markup $218.4 - $156 = $62.4

S= C + M
S = 156 + 0.4
1S - 0.4 = 156
0.6 = 156
= 260

Mark up: S-C

260 - 156
= 104