(d) What is the formula to convert percent markup on selling price to percent markup on cost? How could you explain that a 40% markup on selling price, which is a 66.7% markup on cost, would result in the same OMR markup?
please answers part d only
here answers of a b c
Step 1
Markup
Markup is amount added to cost to recover overhead and gain profits.
Markup is also generally known as profit.
Markup = Selling Price - Cost Price
Markup % on Cost = Markup/Cost * 100
Step 2 Part (a)
Selling Price of signature jeans = OMR 2300
Cost Price of signature jeans = OMR 1800
Markup = Selling Price - Cost Price
Markup = OMR 2300 - OMR 1800 = OMR 500
Markup amount in OMR = OMR 500
Markup as a % of cost = Markup amount/Cost Price * 100
Markup as a % of cost = OMR 500/OMR 1800 *100
Markup as a % of cost = 27.7777777%
Hence,
Markup as a percentage of cost = 27.777777%
Step 3 Part (b)
Lamp Cost = OMR 200
The markup on Selling Price = 40%
Markup = Selling Price - Cost Price
Hence,
Selling Price = Cost Price + Markup
We know, 40% markup is on selling price
Hence,
Let's consider selling price as 'x'
Markup = 40% on selling price
Markup = 40% * x
Markup = .40x
Putting these values in equation we get,
Selling Price = Cost Price + Markup
x = OMR 200 + .4x
x - .4x = OMR 200
.6x = OMR 200
x = OMR 200/.6
x = OMR 333.33
Hence,
Selling Price of Lamp is OMR 333.33
Step 4 Part (c)
Tennis Racket selling price = OMR 800
The markup on Cost Price= 40%
Markup = Selling Price - Cost Price
Hence,
Cost Price= Selling Price - Markup
We know, 40% markup is on cost price
Hence,
Let's consider cost price as 'x'
Markup = 40% on cost price
Markup = 40% * x
Markup = .40x
Putting these values in equation we get,
Cost Price= Selling Price - Markup
x = OMR 800 - .4x
x + .4x = OMR 800
1.4x = OMR 800
x = OMR 800/1.4
x = OMR 571.42857
Hence,
Cost Price of Tennis Racket is OMR 571.42857
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