Problema Solution
At your hardware store, you buy hammers for 30.00 a dozen and sell them for 3.50 each. What is the percent markup for the hammers?
Answer provided by our tutors
Unit Cost = 31/12
Unit Cost = $2.50
Sales Price = $3.50
Gross Profit Margin = Sales Price – Unit Cost
Gross Profit Margin = 3.50 - 2.50
Gross Profit Margin = $1.00
Markup Percentage = Gross Profit Margin/Unit Cost
Markup Percentage = 1 / 2.50
Markup Percentage = 0.4 or 40%
The percent markup for the hammers is 40%.