The given information:
% mark up = 40
Reduced = $144
Markdown = ?
The formula for percentage markup is given as
[tex]\text{ \%markup }=\frac{markup}{actual\text{ price}}\times100[/tex]Let the actual price be x
Hence,
Reduced price = 60% of actual price
[tex]60\text{\% of x = 144}[/tex]Solving for x
[tex]\begin{gathered} \frac{60x}{100}=144 \\ x=\frac{144\times100}{60} \\ x=240 \end{gathered}[/tex]Therefore, actual price = $240
Inserting these values into the %markup formula gives
[tex]40=\frac{\text{markup}}{240}\times100[/tex]Solve for markup
[tex]\begin{gathered} 40=\frac{100\times\text{markup}}{240} \\ 40\times240=100\times\text{markup} \\ \text{markup}=\frac{40\times240}{100} \\ \text{markup}=96 \end{gathered}[/tex]Threefore, markup = $96
