In relation to percentage mark-up, what is the reasoning to divide by .80 rather than multiply by 1.2 if 20%?

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In relation to percentage mark-up, what is the reasoning to divide by .80 rather than multiply by 1.2 if 20%?

All in relation to 20% mark-up margins. On going ? at our office

2007-11-23 03:57:27 · 2 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics

2 answers

I think you have things mixed up.

Multiplying by 1.2 is a 20% mark up.
Multiplying by 0.8 is a 20% mark down.

Dividing by 0.8 is neither. Dividing by 8/10 is the same as multiplying by 10/8 = 1.25. This would be a 25% markup.

2007-11-23 04:17:45 · answer #1 · answered by Puzzling 7 · 1⤊ 0⤋

The results will be incorrect.
Example: 10 x 20% = 2 .....10 + 2 =12 or...10x 1.2 = 12

but 10/.8=12.5......... .833333333 will work lol

10/.8333333=12.000000048 lol

Aha : puzzling is right he caught you , dividing by .8 means more money for you !?? lol

2007-11-23 04:04:17 · answer #2 · answered by iceman 7 · 0⤊ 0⤋