Question

A bag of choclates costs $\$20$ to manufacture and is sold for $\$25$, then the percentage markup is $\text{\%}$ .

• A. 25
• B. 20
• C. 50

Answer 1

The correct option is A 25

Manufacturing cost $=\$20$
Selling Price $=\$25$
Using the formula for Percentage Markup
i.e. $\text{Percentage Markup}=\frac{\text{Selling Price}-\text{Manufacturing Cost}}{\text{Manufacturing Cost}}\times 100\text{\%}$
$\Rightarrow \text{Percentage Markup}=\frac{25-20}{20}\times 100\text{\%}=5\times 5\text{\%}=25\text{\%}$