The percentage markup base is 42.86%
What is markup?
Markup means profit as percentage of cost price whereas margin means profit as percentage of the selling price.
In this case, our emphasis is on markup, in other words, we need to first of all determine profit, which is the selling price minus the cost price, then compare the profit to the cost price in order to ascertain markup.
profit=selling price-cost price
selling price=$50.00
cost price=$35.00
profit=$50.00-$35.00
profit=$15.00
markup=profit/cost price
markup=$15.00/$35.00
markup=42.86%
In essence, the markup based on cost is 42.86% rounded to 2 decimal places.
If it were to be the case of margin, the profit per unit which is $15.00 would be compared to the selling price rather than cost price
Find out more on markup on https://brainly.com/question/19104371
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