A retailer marks up the price of a coffee mug from $6.25 to $8.77. By what percent did the price increase? Round to two decimal places.

The increase is $8.77 − $6.25 = $2.52. Divide the increase by the original price and multiply by 100: ($2.52 ÷ $6.25) × 100 = 40.32%, so the correct choice is 40.32%.

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