Thread: how do you figure out a markup based on a selling price when all you have is the cost

If you are selling parts and they cost you $12.00, how do you figure out what your markup and selling price are if your dollar markup is 40% of your selling price.
I came up with the equations
x=y-12 where x=markup y=selling price and 12=cost
from there i fiqured that x/y=40% so (y-12)/y=40% I don't know if this is correct or how to solve for y if it is.

Originally Posted by rskyla

If you are selling parts and they cost you $12.00, how do you figure out what your markup and selling price are if your dollar markup is 40% of your selling price.
I came up with the equations
x=y-12 where x=markup y=selling price and 12=cost
from there i fiqured that x/y=40% so (y-12)/y=40% I don't know if this is correct or how to solve for y if it is.

Well, I don't think you need to break out the x's and y's for this question. You could if you wanted I suppose.

Your cost is $12.00. And you want to find a 40% mark-up on selling price. Therefore your cost = 60% of the selling price. i.e. $12 is 60% of selling price. Selling price will be 100%.

So if $12 = 60%,
$0.20 = 1% (After dividing both sides by 60).
And $20 = 100% (After multiplying both sides by 100).

Answer - selling price = $20, and mark-up is 20 - 12 = $8.