The markup rate is calculated using the formula:

$\text{Markup Rate} = \left( \frac{\text{Markup}}{\text{Cost Price}} \right) \times 100$

Given:

• Cost Price = $125
• Markup = $23.75

$\text{Markup Rate} = \left( \frac{23.75}{125} \right) \times 100$

$= 0.19 \times 100$

$= 19\%$

Final Answer:

The markup rate is 19%.

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Would you like a breakdown of the steps or a different approach?

Related Questions:

1. How do you calculate the selling price using markup and cost price?
2. If the selling price is known, how can you find the markup percentage?
3. What is the difference between markup rate and profit margin?
4. How does markup percentage affect overall pricing strategy?
5. How do you convert markup from a percentage to a dollar amount?

Tip:

Markup rate is based on cost price, whereas profit margin is based on selling price—don’t mix them up! 🚀