ASVAB · Word Problems

A store buys an item for $60 and sells it for $75. What is the percent markup?

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Correct answer

25%

A 20%
B 25%
C 30%
D 15%

Why this is the answer

PERCENT MARKUP = (increase ÷ original cost) × 100. The increase is $75 − $60 = $15. Markup = (15 ÷ 60) × 100 = 0.25 × 100 = 25%. ASVAB Arithmetic Reasoning tests percent change. Strategy: percent increase/markup is always based on the ORIGINAL (cost) amount, not the new price. Find the difference ($15), divide by the original ($60), and convert to a percent. Note: this differs from percent of profit based on selling price — markup uses cost as the base.

Source: ASVAB Arithmetic Reasoning — Percent Markup

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About this topic: Word Problems

Arithmetic Reasoning is almost entirely word problems: the maths is basic, the skill is translating a sentence into an operation — rate × time, part of a whole, unit price, remaining amount. Read for the question being asked, write the setup before calculating, and sanity-check the answer against the choices. This is one of 7 Arithmetic Reasoning questions on word problems, each with a full explanation on a single study page.

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A store buys an item for $60 and sells it for $75. What is the percent markup?

Why this is the answer

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About this topic: Word Problems

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