# Thread: mark up word problem

1. ## mark up word problem

I don't understand what this question

Just desserts buys cheesecakes from general bakeries at $33.60 per cheesecake. It then cuts each cheesecake into 16 slices and sells them to customers at$6.50 per slice. Calculate the rate of markup on cost and the rate of markup on selling price.

I run into trouble when i try to calculate the markup on cost because the formula is MarkUP = Selling price - Cost

2. Hello, diehardmath4!

Sorry, I don't understand your difficulty . . .

Just Desserts buys cheesecakes from general bakeries at $33.60 per cheesecake. It then cuts each cheesecake into 16 slices and sells them to customers at$6.50 per slice.
Calculate the rate of markup on cost and the rate of markup on selling price.

The cost is: . $\frac{\33.60}{16} \:=\:\2.10$ per slice.

Each slice is sold for \$6.50.

The markup is: . $M \:=\:\6.50 - 2.10 \:=\:\4.40$ per slice.

Rate of markup on cost: . $M_c \:=\:\frac{4.40}{2.10} \:=\:2.095238095 \;\approx\;209.5\%$

Rate of markup on SP: . $M_s \;=\;\frac{4.40}{6.50} \;=\;0.676923077 \;\approx\;67.7\%$