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Difficulty: EasyProfit, Loss, and Markup

A wholesaler purchases a desk for $250\$250 and marks up the cost price by 20%20\% to establish the retail price. If the desk is sold at the retail price, what is the profit, in dollars, earned on the sale?

Answer: 50 $

Answer

The profit earned on the sale of the desk is $50\$50.
The profit is calculated by finding 20%20\% of the cost price of $250\$250, which is 0.20×250=500.20 \times 250 = 50.

Step-by-Step Solution

1
Identify the cost price and markup rate from the problem statement.
Cost price =$250= \$250; Markup rate =20%= 20\%.
Markup is calculated directly as a percentage of the original cost price.
2
Multiply the cost price by the markup percentage to find the profit.
Profit=0.20×250=50\text{Profit} = 0.20 \times 250 = 50.
Taking 20%20\% of the $250\$250 purchase price gives the exact dollar markup/profit.

Key Concept

Dollar profit is calculated as the markup percentage multiplied by the cost price.
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Topics

Profit, Loss, and Markup

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