It cost Seth's Socks $1.25 to produce each pair of socks. Seth's sells its socks for $4.00 per pair. What is the percent of markup on the socks?
220%
[(4.00 - 1.25) / 1.25] * 100%
To find the percent of markup on the socks, we need to calculate the difference between the selling price and the cost price, and then express it as a percentage of the cost price.
Markup = Selling price - Cost price
Markup = $4.00 - $1.25
Markup = $2.75
Now, we need to express the markup as a percentage of the cost price:
Percent Markup = (Markup / Cost price) x 100
Percent Markup = ($2.75 / $1.25) x 100
Percent Markup = 220%
Therefore, the percent of markup on the socks is 220%.
To calculate the percent markup on the socks, we should first determine the cost of the markup and then divide it by the cost of production. Here's how you can find the answer:
1. Calculate the markup per pair of socks:
Markup = Selling Price - Cost Price
Given that the cost price is $1.25 per pair and selling price is $4.00 per pair, we can calculate the markup:
Markup = $4.00 - $1.25 = $2.75.
2. Calculate the percent markup:
Percent Markup = (Markup / Cost Price) * 100
Substitute the values:
Percent Markup = ($2.75 / $1.25) * 100 = 220%.
Therefore, the percent markup on Seth's Socks is 220%.