When trying to calculate markup based on product cost, Doc and Den wanted to determine the markup on a product that cost $150 and sold for $200. What is their markup?
A. $25
B. $40
C. $50
D. $60
E. $110
Answer: (C) When figuring markup based upon cost, Selling Price = Cost + Markup. Since $200 = $150 + $50, (A), (B), (D), and (E) are all incorrect. Utilizing the formula, $200 - $150 = $50. Remember, this is the markup based upon cost, NOT retail selling price.