Problema Solution
What is the percent markup on a pair of shoes selling for $120 that had a wholesale cost of $80?
Answer provided by our tutors
Unit Cost = $80
Sales Price = $120
Gross Profit Margin = Sales Price – Unit Cost
Gross Profit Margin = 120 - 80
Gross Profit Margin = $40
Markup Percentage = Gross Profit Margin/Unit Cost
Markup Percentage = 40/80
Markup Percentage = 0.5 or 50%
The percent markup on a pair of shoes is 50%.