Asked Nov 19, 2019

Expert Answer

Step 1

Markup percentage is referring to the percentage difference in the selling price of a product and its cost price. Markup percentage on cost is added to the cost price to set the selling price of product. Markup percentage is the percentage of profit earned by the seller of a product.

Step 2

S company’s percentage markup on cost is 40%


Total unit cost: $1.25

Desired ROI per unit: $0.50



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desired ROI Markup percentage - x100 total unit cost $0.50 x 100 $1.25 = 40%


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