Markup is the amount added to the cost price of goods to cover overhead and profit.
Sue’s Corner Market has a markup of 60% on bottled water.
Let us say original price was $x.
Now price after markup is $2.
So we can make an equation like:
original price + markup price = price after markup
x + 60% of x =2
[tex] x + 0.6x =2 [/tex]
[tex] 1.6x =2 [/tex]
dividing both sides by 1.6
x= 1.25
So original price was 1.25 dollars.
