Answer:
a) markup = $3
b) markup as a percentage of cost is 33.3%
Step-by-step explanation:
Markup
... markup = selling price - cost
... = $12 - 9
... markup = $3
Markup as a Percentage of Cost
To find the percent markup, divide the markup by the reference value and multiply the ratio by 100%. The reference value for markup is usually cost price, but sometimes may be selling price.
... markup / cost × 100% = 3/9×100% = 33 1/3% ≈ 33.3%
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When the markup is figured as a percentage of selling price, the result is usually called margin. Some folks are not very careful in distinguishing markup from margin.
