To markup a price and find percentage you?

To markup a price and find percentage you?

• A. Add the percentage to the cost
• B. Divide the cost by the percentage
• C. Multiply the cost by the percentage (as a decimal)
• D. Subtract the percentage from the cost

Answer: (C)

The key idea is applying the markup as a rate to the cost. To markup a price, multiply the cost by the markup rate expressed as a decimal. The amount of the markup equals Cost × Rate, and adding that to the cost gives the final price. For example, with a cost of $40 and a 25% markup, the markup is 40 × 0.25 = $10, so the selling price is $50. This shows why multiplying by the decimal rate is the correct operation. Adding the percentage as a dollar amount would assume the percentage is already in dollars; dividing by the percentage doesn’t compute the extra amount correctly; subtracting would reduce the price.

The key idea is applying the markup as a rate to the cost. To markup a price, multiply the cost by the markup rate expressed as a decimal. The amount of the markup equals Cost × Rate, and adding that to the cost gives the final price. For example, with a cost of $40 and a 25% markup, the markup is 40 × 0.25 = $10, so the selling price is $50. This shows why multiplying by the decimal rate is the correct operation. Adding the percentage as a dollar amount would assume the percentage is already in dollars; dividing by the percentage doesn’t compute the extra amount correctly; subtracting would reduce the price.