Be Global

Leaders

MATHEMATICS BUSINESS
Chapter 6 : Mark Up
Lecturer : Dr. Ir. Dedy Dewanto, MM,ACII
Markup on Cost
1.HARD-TO-FIND TOOLS The Brookstone Company sells a precision tool kit for $138.
If the markup is 35% of cost, find the cost.
2. DENTAL TOOLS The cost of a dentist’s handpiece is $560 and the markup is 25% of cost. Find the
markup.
3. GARDEN TOOLS Orchard Supply sells garden sprayers at a price of $18.95. If markup is 38% of
cost, find the cost.
4. LAWN FERTILIZER Orchard Supply sells lawn fertilizer at a price of $12.50 per bag.
If the markup is 25% of cost, find the cost.
5. ELECTRIC WHEELCHAIR A retailer purchases an electric wheelchair for $2820.
The firm uses a markup of 28% on cost. Find the selling price.
6. RECREATION EQUIPMENT Water Sports purchases jet skis at a cost of $2880 each. If its operating
expenses are 25% of its cost, and it wishes to make a net profit of 15% of its cost, find the selling
price.
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 Markup on Selling Price

Exercise 2

1. LEATHER HANDBAG Jelica’s Handbags pays $32.33 for a leather handbag and uses a markup of 34% on
selling price. Find the selling price.
2. AUTO PARTS DEALER An auto parts dealer pays $14.28 per dozen gallons of windshield washer fluid and the
markup is 50% on selling price. Find the selling price per gallon.
3. HOME ENTERTAINMENT SYSTEM Fry’s Electronics sells a home theater speaker package for $595 and
maintains a markup of 35% on selling price. Find the cost.
4. HOT TUB SYSTEM Lowe’s sells a hot tub system for $3522 and maintains a markup of 35% on selling price.
Find the cost.
5. CEILING FANS The cost of a ceiling fan is $92.82 and the markup is 22% on selling price. Find the selling
price.
6. FLY FISHING Field and Stream Sports pays $20.80 for a fly rod and sells it for $32. Find the percent of markup
on selling price
 Exercise 2 Continued
1. BELGIAN FLOOR TILE Handmade floor tile from Belgium has a markup of 36% on the selling price.
The tile has a markup of $1.62 per tile. Find (a) the selling price, (b) the cost, and (c) the cost as a
percent of the selling price per tile.
2. DVD RECORDER Direct Electronics pays $196.78 for a Philips DVD recorder. The markup is 18% on
selling price. Find (a) the cost as a percent of selling price, (b) the selling price, and (c) the markup.
3. CLOCK RADIOS Best Products buys clock radios for $258 per dozen and has a gross profit of $7.74
per clock radio. Find the percent of gross profit based on selling price.
4. HOME-WORKOUT EQUIPMENT Olympics Sports has a markup of $280 on a Schwinn Bowflex. If
this is a 35% markup on selling price, find (a) the selling price, (b) the cost, and (c) the cost as a
percent of selling price.
5. SWIMMING POOL PUMP Leslie’s Pool Supply pays $187.19 for a Hydramax II pump. If the markup
is 28% on the selling price, find (a) the cost as a percent of selling price, (b) the selling price, and
(c) the markup.
6. LEVI’S DOCKER SHIRTS Mervyn’s Department Store priced some Levi’s Docker shirts at $29.95. The
cost of the shirts was 58% of the selling price. Find (a) the cost, (b) the markup, and (c) the markup
as a percent of selling price.
 Exercise 2 Markup on Cost & Selling Price
1. RECYCLING ALUMINUM Recyclable aluminum can be sold for $2880 per ton. If Alcan Recycling
wants a 50% markup on selling price, (a) how much per pound can it pay local residents for their
recycled aluminum? (b) What is the equivalent markup percent on cost?
2. RETAIL SILK FLOWERS A retailer purchases silk flowers for $31.56 per dozen and sells them for
$4.78 each. (a) Find his percent of markup on selling price. (b) What is the equivalent markup on
cost?
3. RIVER RAFT SALES White Water Supply purchased a job lot of 380 river rafts for $7600. If it sold
158 of the rafts at $45 each, 74 at $35 each, 56 at $30 each, and the remainder at $25 each, what
is (a) the total amount received for the rafts, (b) the total markup, (c) the markup percent on
selling price, and (d) the equivalent markup percent on cost?
4. ITALIAN SILK TIES Dress for Success purchased 240 Italian silk ties for $2280. It sold 162 ties at $25
each, 45 ties at $15 each, 20 ties at $10 each, and the remainder at $5 each. Find (a) the total
amount received for the ties, (b) the total markup, (c) the markup percent on selling price, and (d)
the equivalent markup percent on cost.
5. GOLD JEWELRY Zarrima Jewels sells a diamond necklace for $1180, which includes a markup of
60% on selling price. Find (a) the cost and (b) the percent of markup on cost.
6. SMOKING SUPPLIES The Tinder Box Smoke Shop buys a special blend of pipe tobacco in 10-pound
tins at a cost of $24 per tin. The shop sells the tobacco for $1.20 per ounce. Find (a) the markup
percent on selling price and (b) the equivalent markup percent on cost.
 Exercise 3 Markup with Spoilage
1. POTTERY SHOP SALES The Aztec Pottery Shop finds that 15% of its production cannot be sold. It
produces 100 items at a cost of $2.15 each and desires a markup of 40% on selling price. Find the
selling price per item.
2. PRODUCE SALES Country Produce knows that 20% of the strawberries purchased will spoil and
must be thrown out. If it buys 200 baskets of strawberries for $1.20 per basket and wants a
markup of 50% on selling price, find the selling price per basket of strawberries.
3. FALL FASHIONS Jasmon Boutique purchased 25 mohair sweaters designed by a wellknown
designer for a total cost of $1200. The manager estimates that she will have to sell 5 sweaters at a
discount at the end of the fall season, receiving only $225 for all. If she wants a markup of on
selling price, find the price for each sweater.
4. IMPORTED CANDLES Cost Plus Imports purchased 30 crates of candles from Mexico for a total cost
of $237.60. Each crate contains 3 dozen candles. If 4 crates of the candles are sold at the reduced
price of $0.25 per candle and Cost Plus Imports wants a markup of 100% on cost, find the regular
price per candle.
5. LONG-STEMMED ROSES Farmers Flowers purchased 12 gross of long-stemmed roses at a cost of
$1890. If 25% of the roses must be sold at $15.00 per dozen and a markup of 100% on cost is
needed, find the regular selling price per dozen roses.
6. CUSTOM BASEBALL CAPS Custom Caps buys 2000 baseball hats at $7.50 per hat. If a markup of
50% on selling price is needed and 5% of the hats are unsaleable, what is the selling price of each
hat?
 Exercise 3 Markup with Spoilage
Find the mean and standard deviation for each set of data. Round answers to the nearest tenth.
1. TOVE SHELL CASTINGS Bethel Metals finds that 20% of its stove shell castings are unsaleable. If the
cost of manufacturing 55 stoves is $10,450 and Bethel Metals needs a markup of 30% on cost,
what is the selling price per stove?
2. HALLOWEEN PUMPKINS River Market purchased 120 small but perfect pumpkins before
Halloween for $320. The manager expects 15 pumpkins to spoil. If she needs a markup of 100% on
cost, find the average selling price needed.
3. RECAPPED TRUCK TIRES Wheelco Tire recaps truck tires at a cost of $80.50 per tire. Past
experience shows that 12% of the recaps must be sold as blemishes for $105. If it recaps 500 tires
and a markup of 110% on cost is desired, what is the regular selling price per tire?
4. ROOFING TILE Solano Tile manufactures roof tile at a cost of $42 per square. Past experience
shows that 8% of a production run are irregulars and must be sold for $45 per square. If a
production run of 10,000 squares is completed and Solano Tile desires a markup of 80% on cost,
what is the selling price per square?
5. BOOK PUBLISHING U.S. Publishing Company prints a book on sports memorabilia at a production
cost of $10.80 per copy. It knows that 20% of the production will be sold for $11.50 per copy. It
prints 50,000 books and it wants a markup of 50% on selling price. Find the selling price per book.
Round to the nearest cent.
6. IMPORTED WALLPAPER Wallpaper Specialty Imports purchased 7000 rolls of wallpaper
manufactured in France at a cost of $18.90 per roll. Past experience shows that 25% of the
wallpaper will have to be sold for $20.25 per roll. Find the selling price per roll if the store wants a
 The end
Thank you