What is the mark-up percentage for the wooden stools purchased by the store manager?
The manager of the store has a mark-up percentage of approximately 199.0% on the wooden stools. This means that the selling price is about 199.0% higher than the cost price.
Calculating Mark-up Percentage
The manager of a store purchases wooden stools for $14 each and sells them for $41.86 each. To determine the mark-up percentage, we need to find the difference between the selling price and the cost price, and then calculate it as a percentage of the cost price.
1. Find the Mark-up Amount:
The difference between the selling price and the cost price is calculated as:
$41.86 - $14 = $27.86
2. Calculate the Mark-up Percentage:
To find the mark-up percentage, we divide the mark-up amount by the cost price and multiply by 100:
Mark-up Percentage = ($27.86 / $14) * 100 ≈ 199.0%
Therefore, the mark-up percentage for the wooden stools is approximately 199.0%. This percentage reflects how much higher the selling price is compared to the cost price, allowing the store to cover expenses and generate a profit on each stool sold.