Percentages, SM-Bank 076

A farmer sells a box of oranges to a supermarket with a 15% markup.

The supermarket then adds a further 20% on the already increased price.

What is the overall percentage markup on the box of oranges? (2 marks)

--- 5 WORK AREA LINES (style=lined) ---

Show Answers Only

$38\%$

Show Worked Solution

$\text{Strategy 1}$

$\text{Assume the box of oranges costs }$1.00.$

$\text{Cost after }15\text{% markup}=$1.15$

$\text{Cost after further }20\text{% increase}$	$= 1.15+(20\%\times 1.15)$
	$=1.15+0.23=$1.38$

$\therefore\ \text{Overall markup} =(1.38-1.00)\times 100 =38\%$

$\text{Strategy 2}$

$\text{Overall markup}$	$=(1\times 1.15\times 1.20)-1$
	$=1.38-1.00=0.38=38\%$

\(\text{Cost after further }20\text{% increase}\)	\(= 1.15+(20\%\times 1.15)\)
	\(=1.15+0.23=$1.38\)

\(\text{Overall markup}\)	\(=(1\times 1.15\times 1.20)-1\)
	\(=1.38-1.00=0.38=38\%\)