Markup (or price spread) is the difference between the selling price of a good or service and cost.
Given:
Markup = $8.45
Selling Price = $42.25
Percent Mark up is given as
[tex]Markup\text{ Percentage = }\frac{Selling\text{ Price }-Cost\text{ Price}}{Cost\text{ price}}\times100\text{\%}[/tex]Since
Markup = Selling Price - Cost Price
This implies
Cost Price = Selling Price - Markup
Hence
[tex]\begin{gathered} \text{Cost Price }=42.25-8.45 \\ \text{Cost Price }=\text{ \$33.8} \end{gathered}[/tex]Hence, percent Markup is calculated as
[tex]Markup\text{ Percentage =}\frac{42.25-33.8}{33.8}\times100[/tex]Simplify the equation
[tex]\begin{gathered} Markup\text{ Percentage =}\frac{8.45}{33.8}\times100 \\ Markup\text{ Percentage =}0.25\times100 \\ Markup\text{ Percentage =}25\text{\%} \end{gathered}[/tex]Therefore, the percent markup is 25%
