To calculate the markup as a percentage, we need to follow these steps:
1. **Calculate the Markup Amount:**
First, we find the amount by which the selling price exceeds the cost price.
Markup Amount = Selling Price - Cost Price
Given that the Selling Price (SP) is $372 and the Cost Price (CP) is $200, we can substitute these values in:
Markup Amount = $372 - $200 = $172
2. **Calculate the Markup Percentage:**
Next, we calculate the markup percentage which tells us by what percent the cost price has been increased to reach the selling price.
Markup Percentage = (Markup Amount / Cost Price) * 100
Substituting Markup Amount and Cost Price into the formula:
Markup Percentage = ($172 / $200) * 100
3. **Perform the Division and Multiplication:**
Now, we carry out the division and then multiply the result by 100 to get the percentage:
Markup Percentage = (0.86) * 100
Markup Percentage = 86%
So, the markup on the chandelier is 86%, which means the entrepreneur is selling the chandeliers at 86% more than their cost price.
