The cost to a distributor for a product is $25. The distributor sells the product for $51 to the customers.

1. What is the amount of the markup?

Markup = $

2. What is the markup based on the cost (expressed as a percentage)? Round the answer to two decimal places.

Markup based on Cost = %

To determine the markup and the markup percentage based on the cost, follow these steps:

### 1. Calculate the amount of the markup:
Markup is the difference between the selling price and the cost price.
\[
\text{Markup} = \text{Selling price} - \text{Cost price}
\]

Given:
\[
\text{Cost price} = \$25
\]
\[
\text{Selling price} = \$51
\]

So,
\[
\text{Markup} = 51 - 25 = 26
\]

### 2. Calculate the markup based on the cost (expressed as a percentage):
Markup percentage based on the cost is calculated by dividing the markup by the cost price and then multiplying by 100 to get the percentage.
\[
\text{Markup percentage} = \left( \frac{\text{Markup}}{\text{Cost price}} \right) \times 100
\]

Substitute the values:
\[
\text{Markup percentage} = \left( \frac{26}{25} \right) \times 100
\]

\[
\text{Markup percentage} = 1.04 \times 100 = 104\%
\]

Thus:

1. **Markup = \$26**

2. **Markup based on Cost = 104.00%**

Would you like more details or have any questions about the calculation?

Here are some related questions that might help deepen your understanding:

1. How does markup differ from profit margin?
2. What factors can influence the markup a distributor sets for a product?
3. How would the markup percentage change if the selling price was reduced to $45?
4. How can a distributor determine the optimal markup for their products?
5. What is the formula for calculating profit margin based on selling price?
6. How can distributors use markup percentages to ensure profitability?
7. How does the markup percentage impact the final retail price?
8. What strategies can distributors use to justify higher markups to their customers?

**Tip:** Always be aware of both markup and margin in business to ensure you're pricing products effectively and maintaining profitability.

Learn how to calculate markup and markup percentage based on cost for a product using detailed step-by-step solutions. Understand the difference between cost price and selling price, and apply markup percentage formulas effectively.

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