The selling price of an article is equal to the cost of the article plus the markup. The markup on a certain television set is what percent of the selling price?
1 Explanation
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Danny Watts Jr
Selling price (p) = cost (c) plus markup (m); so p = c + m
(1): m = (1/4) c. Logically, this question is sufficient because price is simply the sum of the cost and markup. If we know the markup is 25% of the cost, then we should be able to find its ratio to the price. You can use values to solve this. If c = 8, then m must be 2, and since p = c + m, then p = 10. Thus, m must be 20% of the price. SUFFICIENT.
(2): price = $250. This option doesn't provide any detail regarding cost or markup, so it must be INSUFFICIENT.
1 Explanation