Sally Rudolph is selling a new shirt, which she made, to her friend for $1,000. The shirt cost Sally $400. What is her markup?
A. $40
B. $100
C. $300
D. $400
E. $600
Answer: (E) is the correct choice. The shirt would be marked up $600. To calculate the amount of markup, you use the formula Amount of Markup = Selling Price - Cost. If the shirt sold for $1,000, and the cost to Sally was $400, then $1,000 - $400 = $600. (A), (B), (C), and (D) are incorrect.