Percentages • Topic 6 of 8

Markups

A markup is a percentage increase a seller adds to the cost price to set the selling price. The selling price is cost × (1 + markup%), and the markup amount is markup% × cost. To find the markup percent, divide the profit (selling − cost) by the cost and multiply by 100. The base for a markup is the cost price, whereas a discount uses the marked price — keeping track of the correct base is the key SAT skill. Markup and discount can combine: a marked-up item later discounted is another successive-percentage calculation.

✅ Solved examples

1. An item costing $40 is marked up 25%. What is the selling price?
40 × 1.25 = $50.
2. A store buys a toy for $20 and sells it for $26. What is the markup percent?
Profit = 6; 6 ÷ 20 = 0.30 = 30%.
3. A $200 cost item has a 15% markup. What is the markup amount?
0.15 × 200 = $30.
4. A product costs $80 and is marked up 50%. Selling price?
80 × 1.50 = $120.

✏️ Practice — try these, take hints as needed

1. An item costing $60 is marked up 20%. What is the selling price?
Multiply by 1.20.
60 × 1.2.
Compute.
$72.
2. A shop buys for $50 and sells for $65. What is the markup percent?
Profit = 15.
15 ÷ 50.
× 100.
30%.
3. A $120 cost item has a 25% markup. What is the markup amount?
0.25 × 120.
Compute.
—
$30.
4. A product costs $90 and is marked up 40%. Selling price?
Multiply by 1.40.
90 × 1.4.
Compute.
$126.
5. Cost $25, selling $30. Markup percent?
Profit = 5.
5 ÷ 25.
× 100.
20%.

📝 Topic test — 8 questions

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