Understanding Markups

What is the primary reason stores use markups?

• To attract more customers

• To reduce inventory

• To make a profit

• To cover the cost of production

If a store marks up an item by 120%, what is the decimal equivalent used in calculations?

• 2.2

• 1.2

• 0.12

• 12

Which step is NOT part of calculating the price after a markup?

• Convert the percentage to a decimal

• Multiply the decimal by the original cost

• Subtract the original cost from the new price

• Add the result to the original cost

When finding the original price from a marked-up price, what is the first step?

• Convert the markup percentage to a fraction

• Multiply the sale price by the markup percentage

• Add 100% to the markup percentage

• Subtract the markup percentage from 100%

If a fishing pole is sold for $75 after a 70% markup, what was the original price?

• $44.12

• $127.50

• $75.00

• $52.50