Question

The average markup for a produce department is 28 percent on selling price. When sold at 28 percent markup on selling price, bananas usually account for 25 percent of department sales and 25 percent of department markup. This week, because bananas were on special sale at the retailer’s cost, the department sold twice as many pounds of bananas as usual. However, they were sold at zero markup. If all other things remain the same, what is the average markup on selling price for the entire produce department this week?

Answer 1

markup" is difficult without very clear language. There are two distinct definitions. This one is the trickier of the two, being bounded on [0,1).

"a markup of 45% on the selling price" means the selling price has these two parts:
-------------- 45% profit (markup)
-------------- 55% wholesale and other costs

Buy a pound: $0.28

Discard 10%: $0.28/0.90 = $0.3111111111

This is 55% of the selling price: ($0.28/0.90)/0.55 = $0.56666666

How's that for 57¢?

Notice how I didn't care how many pounds were purchased.
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