By Dr. John T. Drea, Western
Illinois University
Markup Examples
lExample: A shirt sells for $25, with a cost of $20.
What’s the markup %?
–Markup % = ($
markup)/selling price
–Markup % =
5/25 = 20%
lExample:
A shirt costs $12 to produce w/ a 25% markup? What’s the selling
price?
–$12/(1-0.25) =
$16 selling price
lIf
the shirt had been marked up 40% instead of 25%, what would be the selling price?
–$12/(1-0.40) =
$20 selling price