Old Navy wants to introduce a new line of fleece pullovers. They have an extra lining that makes them even better at keeping out the cold than the previous year's pullovers. It costs Old Navy $10 to acquire each pullover from the manufacturer. Old Navy then sells each pullover for $25. What percent markup is Old Navy using?

A. 60%

B. 250%

C. 40%

D. 150%

E. 25%

Question

Business

Yair Huynh

8 October, 13:44

Old Navy wants to introduce a new line of fleece pullovers. They have an extra lining that makes them even better at keeping out the cold than the previous year's pullovers. It costs Old Navy $10 to acquire each pullover from the manufacturer. Old Navy then sells each pullover for $25. What percent markup is Old Navy using?

A. 60%

B. 250%

C. 40%

D. 150%

E. 25%

+2

Answers (1)

Know the Answer?

Robert Mercer · Answer 1

D

Explanation:

Mark up is the extra amount added to the cost of an item in order to accommodate profit while setting the selling price.

It is calculated by dividing the gross profit by the cost price and multiplied by 100

Workings

Cost of purchase = $10

Selling price = $25

Profit = 25-10 = $15

Mark up = 15/10 * 100

=150%