Number 1

1) A golf store pays its wholesaler $40 for a certain club, and then sells it to a golfer for $75.
What is the markup rate?

Given: 𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒 = $40

𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 = $75

𝑀𝑎𝑟𝑘 𝑢𝑝 𝑣𝑎𝑙𝑢𝑒 = 75 − 40 = $35
𝑚𝑎𝑟𝑘 𝑢𝑝 𝑣𝑎𝑙𝑢𝑒
Formula: 𝑀𝑎𝑟𝑘 𝑢𝑝 𝑟𝑎𝑡𝑒 =
𝑐𝑜𝑠𝑡 𝑝𝑟𝑖𝑐𝑒

𝑚𝑎𝑟𝑘 𝑢𝑝 𝑣𝑎𝑙𝑢𝑒 35
Solution: 𝑀𝑎𝑟𝑘 𝑢𝑝 𝑟𝑎𝑡𝑒 = 𝑐𝑜𝑠𝑡 𝑝𝑟𝑖𝑐𝑒
= 40 = 87.5%

Therefore, the mark up rate is 𝟖𝟕. 𝟓%

Number 2
2) A product is originally priced at $55 is marked 25% off. What is the sale price?

Given: 𝐿. 𝑃 = $55

𝑚 = 25

Formula: 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒 = ሺ100 − 𝑚ሻ% 𝑥 𝐿. 𝑃

Solution: 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒 = ሺ100 − 𝑚ሻ% 𝑥 𝐿. 𝑃

= ሺ100 − 25ሻ% 𝑥 55
= 75% 𝑥 55
= 0.75 𝑥 55
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒 = $41.25

Therefore, the selling price is $𝟒𝟏. 𝟐𝟓

 Number 3
3) A product is marked down 15%; the sale price is $127.46. What was the original price?

Given: 𝑆. 𝑃 = $127.46

𝑚 = 15

Formula: 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒 = ሺ100 − 𝑚ሻ% 𝑥 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑝𝑟𝑖𝑐𝑒

Solution: 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒 = ሺ100 − 𝑚ሻ% 𝑥 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑝𝑟𝑖𝑐𝑒

$127.46 = ሺ100 − 15ሻ% 𝑥 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑃𝑟𝑖𝑐𝑒

$127.46 = 85% 𝑥 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑃𝑟𝑖𝑐𝑒
$127.46 = 0.85 𝑥 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑃𝑟𝑖𝑐𝑒
$127.46
0.85
= 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑃𝑟𝑖𝑐𝑒

$149.95 = 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑃𝑟𝑖𝑐

Therefore, the original price is $𝟏𝟒𝟗. 𝟗𝟓

Number 4
4) A sells to B an item at 15% profit. B sells the same item to C at 20% profit. If C pays $1656 for
it. What is the price at which A bought the item?

Given: 𝐿𝑒𝑡 𝑥 𝑏𝑒 𝑡ℎ𝑒 𝑐𝑜𝑠𝑡 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 𝐴

𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒 𝑜𝑓 𝐵 = 1.15𝑥

𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒 𝑜𝑓 𝐶 = ሺ1.2ሻ1.15𝑥 = 1.38𝑥
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐶 = $1656

Formula: 𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒 𝑜𝑓 𝐶 = 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐶

Solution: 𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒 𝑜𝑓 𝐶 = 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐶

1.38𝑥 = $1656
1.38𝑥 $1656
1.38
= 1.38

𝑥 = $1,200

Therefore, the price at which A bought the item is $𝟏, 𝟐𝟎𝟎

 Number 5
5) If good are purchased for $ 1500 and one fifth of them sold at a loss of 15%. Then at what mark up rate
should the rest be sold to obtain a overall mark up rate of 15%?

In each question, the good that are purchased by $1500 need to have a mark up rate of 15%

Solution:

First step:

𝑆. 𝑃 = 115% 𝑥 1500

= 1.15% 𝑥 1500

𝑆. 𝑃 = $1725

We must receive $1725 for 15% mark up rate when all the goods are sold.

Second step:

1
To get the received amount, we need to get of $1500, and that is $300. The 15% loss of 300 is 255.
5

On the other hand, in order to reach 15% mark up rate overall, we need get the amount to be received by
1
subtracting $300 by $1500, and that is $1200. Because of them sold at loss of 15%, then we have a profit of
5
270. Therefore, we need to add $1200 by $270, and that is $1470. Then, to get the total amount, we have to
add $1470 by $255, and that is $1725.

By this explanation, we have the given:

𝐶. 𝑃 = $1200 𝑆. 𝑃 = $1470 𝑃𝑟𝑜𝑓𝑖𝑡 = $270

Formula of mark up rate:

𝑝𝑟𝑜𝑓𝑖𝑡
𝑀𝑎𝑟𝑘 𝑢𝑝 𝑟𝑎𝑡𝑒 = ቀ ቁ 𝑥 100%
𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒

270
=ቀ ቁ 𝑥 100%
1200

= ሺ0.225ሻ𝑥 100%

𝑀𝑎𝑟𝑘 𝑢𝑝 𝑟𝑎𝑡𝑒 = 22.5%

Therefore, the rest of the goods to be sold have a mark up rate of 𝟐𝟐. 𝟓% to have the mark up rate of 15%
overall.
 Number 6
6) By selling 20 articles, a trader gained the selling price of 5 articles. Find the mark up rate.

Solution:

Let x be the profit of 5 articles

𝑆. 𝑃. 𝑜𝑓 20 𝑎𝑟𝑡𝑖𝑐𝑙𝑒𝑠 = 4ሺ𝑆. 𝑃 𝑜𝑓 5 𝑎𝑟𝑡𝑖𝑐𝑙𝑒𝑠ሻ

= 4ሺ𝑥ሻ

𝑆. 𝑃. 𝑜𝑓 20 𝑎𝑟𝑡𝑖𝑐𝑙𝑒𝑠 = 4𝑥

𝐶. 𝑃. 𝑜𝑓 20 𝑎𝑟𝑡𝑖𝑐𝑙𝑒𝑠 = 𝑆. 𝑃 𝑜𝑓 5 𝑎𝑟𝑡𝑖𝑐𝑙𝑒𝑠 − 𝑃𝑜𝑓𝑖𝑡 𝑜𝑓 20 𝑎𝑟𝑡𝑖𝑐𝑙𝑒𝑠

= 𝑆. 𝑃. 𝑜𝑓 20 𝑎𝑟𝑡𝑖𝑐𝑙𝑒𝑠 = 4𝑥 − 𝑥

𝐶. 𝑃. 𝑜𝑓 20 𝑎𝑟𝑡𝑖𝑐𝑙𝑒𝑠 = 3𝑥

𝑥
𝑀𝑎𝑟𝑘 𝑢𝑝 𝑟𝑎𝑡𝑒 = ቀ ቁ 𝑥 100%
3𝑥

1
= 𝑥 100%
3

𝑀𝑎𝑟𝑘 𝑢𝑝 𝑟𝑎𝑡𝑒 = 33.33%

Therefore, the mark up rate is 33.33%

Number 7
7) A person wants to get 20% mark up rate after selling his object at 20% discount. Find the required percentage
increase in marked price.

Given: 𝐶. 𝑃 = 100
𝑥 = 150
𝑆. 𝑃 = 120
𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒 = $100 𝑀𝑎𝑟𝑘𝑒𝑡 𝑝𝑟𝑖𝑐𝑒 = $150
𝑀. 𝑃 = 𝑥
Therefore, the required percentage increase in market
80% 𝑜𝑓 ሺ𝑀. 𝑃ሻ = 𝑆. 𝑃 price is $𝟓𝟎

0.8𝑥 = 120

0.8𝑥 120
=
0.8 0.8
 Number 8
The selling price of 10 articles is the cost price of 15 articles. Find profit or loss percentage.

Solution:

𝑆. 𝑃 𝑜𝑓 10 𝑎𝑟𝑡𝑖𝑐𝑙𝑒𝑠 = 15 𝑥 1 = $15

15
𝑆. 𝑃 𝑜𝑓 1 𝑎𝑟𝑡𝑖𝑐𝑙𝑒 = = $1.5
10

𝑃𝑟𝑜𝑓𝑖𝑡 = 1.5 − 1 = 0.5

0.5
𝑃𝑟𝑜𝑓𝑖𝑡 𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 = ൬ ൰ 𝑥 100% = 50%
1

Therefore, the profit or loss percentage is 𝟓𝟎%

Number 9
On selling 20 units of an item, the profit is equal to cost price of 5 units. Find the mark mark up rate.

Let u be the cost price of one unit, therefore:

𝐶𝑜𝑠𝑡 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 5 𝑢𝑛𝑖𝑡𝑠 𝑖𝑠 5𝑢

𝐶𝑜𝑠𝑡 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 20 𝑢𝑛𝑖𝑡𝑠 𝑖𝑠 20𝑢

On selling 20 units of an item, the profit is equal to the cost price of 5 units, then:

𝑝𝑟𝑜𝑓𝑖𝑡
𝑀𝑎𝑟𝑘 𝑢𝑝 𝑟𝑎𝑡𝑒 = ൬ ൰ 𝑥 100%
𝑐𝑜𝑠𝑡

5𝑚
=൬ ൰ 𝑥 100%
20𝑚

1
= ൬ ൰ 𝑥 100%
4

= 0.25 𝑥 100%

𝑀𝑎𝑟𝑘 𝑢𝑝 𝑟𝑎𝑡𝑒 = 25%

Therefore, the mark up rate is 𝟐𝟓%

 Number 10
10) Difference between the cost price of two products is $10. Difference between the selling price is
$20. If one is sold at 20% profit and other one is sold at 20% loss, find the cost price of each product.

Solution:

Let a and b be the cost price of each product.

The difference between the cost price of the two product is 10:

𝑎 − 𝑏 = 10

Since a is sold at 20% profit, then the selling price for this is:

120% 𝑥 𝑎 = 1.2𝑎

Since b is sold at 20% loss, then the selling price for this is:

80% 𝑥 𝑏 = 0.8𝑏

Difference between the selling price of a and b is $20, therefore:

1.2𝑎 − 0.8𝑏 = 20

We have to multiply each by 10, so:

1.2𝑎ሺ10ሻ − 0.8𝑏ሺ10ሻ = 20ሺ10ሻ; 12𝑎 − 8𝑏 = 200

Now, we need to divide each side by 4, so:

12𝑎ሺ4ሻ − 8𝑏ሺ4ሻ = 200ሺ4ሻ; 3𝑎 − 2𝑏 = 50

Since the difference between the cost price of two products is 12𝑎 − 8𝑏 = 200, we need to substitute it
by a and b:

3ሺ10ሻ = 30
2ሺ10ሻ = 20

Therefore, the cost prices of the two products is $𝟑𝟎 and $𝟐𝟎