Question

use the appropriate formula to find the equivalent markup on selling price.
% markup on cost | % markup on selling price
16% |? %

% markup on cost | % markup on selling price
16% | □%
(round to the nearest percent.)

Explanation:

Step1: Recall the formula for markup on selling price

The formula to convert markup on cost (\(M_c\)) to markup on selling price (\(M_s\)) is \(M_s=\frac{M_c}{1 + M_c}\), where \(M_c\) is the markup on cost (expressed as a decimal).

Step2: Convert the markup on cost to decimal

Given \(M_c = 16\%=0.16\).

Step3: Apply the formula

Substitute \(M_c = 0.16\) into the formula: \(M_s=\frac{0.16}{1 + 0.16}=\frac{0.16}{1.16}\approx0.1379\).

Step4: Convert back to percentage

Multiply by 100 to get the percentage: \(0.1379\times100\approx14\%\) (rounded to the nearest percent).

Answer:

14%