Complete the problems below on markup and margin.

Remember:

markup - taking the cost of the item and increasing it by a percentage of that cost [e.g., marking up an item that costs $100 by 25% would result in a price of $125 ($100*1.25)]; can also be expressed as amount (e.g. a markup of $25)

margin is stated as the percentage of a retail price that is above the cost; if an item’s retail price is $125 and it costs $100, the margin is 20%

([125-100]/125 = 20%)

Show your work! You may use a calculator. Round percentages to one decimal place.

1. If the cost of an item is $72 and it has a retail price of $89, what is the margin?

2. For the same example as above, what is the markup if the price is $89 and the cost is $72?

3. A convenience store buys 2-litre jugs of milk for $2.99 and sells them for $4.29. What is the margin they earn on the milk?

4. A manufacturer sells a 3-person tent to its wholesalers for $59.95. Wholesalers take a markup on selling price of 15% and sell to retailers who take a markup on selling price of 45%. How much does this tent cost you?