An item costs $20; resale is 175% of cost
- Price = 1.75 × 20 = $35.
- Profit = 35 − 20 = $15.
- Profit / cost = 15/20 = 75%. A 175% markup would instead give a $55 price.
Resale, profit & better decisions
Define the base, calculate the result, and explain your choice.
Name what the resale percentage means
A resale price of 150% of cost means price = 1.50 × cost, so the markup is 50% of cost. A 150% markup means adding 1.50 × cost to the cost, so price = 2.50 × cost. The project wording uses resale amounts over 100%; write “percent of cost” or “markup on cost” explicitly in your work.
Revenue and profit are different.
Predict first. Change one value, then explain what stays the same and what changes. All bars use the same scale within a model.
Profit is revenue minus the relevant cost
If an item costs $24 after coupons and sells for $36, the profit is $12. Profit as a percent of that cost is 12/24 × 100% = 50%. Comparing profit with selling price instead gives a different measure, 12/36 × 100% = 33 1/3%. State the denominator. If the cost is zero, percentage profit on cost is undefined even when dollar profit can be calculated.
Make the model match the market
A high advertised resale price does not guarantee a sale. Track items actually sold and apply only the chance card you receive. Separate the original listed basket value from the amount paid after coupons. Count remaining stock separately; expected or advertised revenue is not actual revenue. In the classroom project, use the teacher’s stated treatment of tax and costs.
Worked examples
A chance card lowers an $80 asking price by 15%
- Actual sale revenue = 80 × 0.85 = $68.
- If the purchase cost was $50, profit = 68 − 50 = $18.
- Profit on cost = 18/50 × 100% = 36%.
Guided Practice
You pay $30 and resell at 120% of cost. Find the price, dollar profit and percent profit on cost.
A first hint
120% of cost includes the original 100%.
Compare your reasoning
Price = $36; profit = $6; profit on cost = 20%.
Practice
Fresh questions · useful feedback
Build fluency, one decision at a time.
Work through eight questions. Two independent correct answers introduce a harder version; supported answers bring the next question back to the foundation. You can use hints at any time.
0 of 8 questions completed
This round saves on this device. It is practice, not a school mark.
Connections
One strategy produces $10 profit on $20 cost and another $18 on $60 cost. Which has the higher dollar profit? Which has the higher percent profit? Explain why both comparisons can be useful.
Use it in Extreme Couponing
Record the whole, the percent multiplier and the result with units. For each coupon, use the eligible amount at that step. State whether a resale percentage means percent of cost or markup on cost.