Furnitur stor marks up item 20% buys couch for 350.00 what is the selling price?

Question

Furnitur stor marks up item 20% buys couch for 350.00 what is the selling price?

Answer 1

The mark up is hoaw much you increase the price YOU ( as the store) paid - in i  your example as a percentage of the BUYING IN price

BUY ................................ Sell   ..............        Mark Up

100                                   150                           50 %

Buy 350......     Mark Up  20 per hundred and you have 3 and a half hundreds     3.5  * 20  =     70

Or  350   X  0.2   ......................... 70

For the selling price you need to add your mark up To the bought in price

so that is 350 + 70 ..........=    420

A good short cut with all this type of add a percentage sums

is original sum      X   1.%

in your example      ...........................350     x      1.20 = 420

OK? hope that helps

YOU should note  In future  :-

MARK UP IS NOT THE SAME AS PROFIT

You can have 100 % mark up  BUT YOU CAN NEVER HAVE 100 % profit .. ( unless you got the item free)

mark up is the profit expressed as a percentage of the buying price

Profit is the difference between the buying and selling price expressed as a percentage of the SELLING price

so , in your example the profit would be

70 / 420 X 100  =  16.66 % profit

--------------------------------------...

BUY AT 500       SELL AT 1000  IS 100 % MARK UP

BUT      ONLY 50 % profit