Question

a toy shop purchases 125 identical stuffed animals for a total cost of $312.50 and sells them for $7 each. what is the percent markup? %

Explanation:

Step1: Find cost per stuffed animal

The total cost for 125 stuffed animals is $312.50. To find the cost per stuffed animal, we divide the total cost by the number of stuffed animals. So, the cost per stuffed animal \( C \) is \( C=\frac{312.50}{125} \). Calculating this, \( \frac{312.50}{125} = 2.5 \) dollars per stuffed animal.

Step2: Find the markup amount per stuffed animal

The selling price per stuffed animal is $7. The markup amount \( M \) per stuffed animal is the selling price minus the cost price. So, \( M = 7 - 2.5 \). Calculating this, \( 7 - 2.5=4.5 \) dollars.

Step3: Calculate the percent markup

The percent markup formula is \( \text{Percent Markup}=\frac{\text{Markup Amount}}{\text{Cost Price}}\times 100\% \). We know the markup amount is $4.5 and the cost price is $2.5. So, substituting these values in, we get \( \text{Percent Markup}=\frac{4.5}{2.5}\times 100\% \). Calculating \( \frac{4.5}{2.5}=1.8 \), and then multiplying by 100% gives \( 1.8\times 100\% = 180\% \).

Answer:

180%