Question

A baker sells a box of muffins for $\$6.50$. The manufacturing cost of the muffins is $\$5$. The delivery charge is $\$0.20$. What is the percentage markup on the muffins?

• A. $30\%$
• B. $25\%$
• C. $35\%$
• D. $20\%$

Answer 1

The correct option is A $30\%$

Total cost(TC) = Manufacturing cost(MC) + delivery charge

TC$=\$5+\$0.20=\$5.20$

Selling price(SP) $=\$6.5$

We know : $\%\text{markup}=\frac{SP-MC}{MC}\times 100$

$\Rightarrow \%\text{markup}=\frac{6.5-5}{5}\times 100=30\%$