Cook-n-serve carries oven mitts that have a selling price of $13.80 a pair. cook-n-serve buys the mitts from a wholesaler and receives a 40% trade discount. what is the markup rate on cost and the markup rate on selling price?

The oven mitts cost

$13.80

But, Cook-n-Serve buys from a wholesaler, so they receive a discount of 40%

This means that they pay

(1-0.4)*($13.80) = 0.6*($13.80) = $8.28 for each pair

The markup rate on cost is 60%

And they sell for

$13.80/$8.28 = 1.67 times the price

1.67*100% = 167%

The markup rate on selling price is  167%

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