# Question & Answer: Payton Sanchez runs a popcorn stand in the local amusement park. Her cost to produce a bag of popcorn is \$0.40, which she sells for \$2…..

Payton Sanchez runs a popcorn stand in the local amusement park. Her cost to produce a bag of popcorn is \$0.40, which she sells for \$2.00. What is Payton’s markup percentage on a bag of popcorn? (Round answer to 0 decimal places, e.g. 25%.) Markup percentage % If Payton wants to earn a 500% markup on a bag of popcorn, what price must she charge? (Round answer to 2 decimal places, e.g. 0.38.) Price \$ If Payton lowers her price per bag to \$1.50, what markup percentage will she earn on a bag of popcorn? (Round answer to 0 decimal places, e.g. 25%.) Markup percentage %

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Question & Answer: Payton Sanchez runs a popcorn stand in the local amusement park. Her cost to produce a bag of popcorn is \$0.40, which she sells for \$2…..
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1)Markup = price-cost

= 2-.40

= \$ 1.6

markup % =markup /cost

= 1.6 /.40

= 4 or 400% on bag of popcorn

2)price = cost(1+markup%)

= .40(1+5)

= .40*6

= \$ 2.4

3)markup = 1.5-.40 = \$ 1.1

markup%= 1.1/.40 = 2.75 or 275% on bag of popcorn