Question

Main Street Service bought four Michelin tires from a wholesaler for $343.00 and sold the tires at a markup of 30% of the selling price. (a) For how much were the tires sold? (b) What is the rate of markup based on cost?

Answer 1

a)

$C=\$343.00, M=S\times\dfrac{30\%}{100\%}=0.3S$

$S=C+M$

Substitute

$$S=343+0.3S$$ $$0.7S=343$$ $$S=\$490$$

b)

$$M=0.3S=0.3(\$490)=\$147$$ $$\dfrac{M}{C}\cdot100\%=\dfrac{147}{343}\cdot100\%=42.857\%$$

The rate of markup based on cost is $42.857\%.$