BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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₱115.00
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₱150.00
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₱105.00
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₱100.50
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Detailed explanation-1: -For example, if a product costs $100, the selling price with a 25% markup would be $125: Gross Profit Margin = Sales Price – Unit Cost = $125 – $100 = $25. Markup Percentage = Gross Profit Margin/Unit Cost = $25/$100 = 25%. Sales Price = Cost X Markup Percentage + Cost = $100 X 25% + $100 = $125.
Detailed explanation-2: -How much is a 25% markup? A 25% markup means that the price of an item to be sold to a customer is 25% higher than the cost to the seller. An item priced at $30 with a 25% markup means the cost to the seller was $24.
Detailed explanation-3: -Simply take the sales price minus the unit cost, and divide that number by the unit cost. Then, multiply by 100 to determine the markup percentage.
Detailed explanation-4: -% of Profit on selling price = (25 * 100)/125 = 20% Was this answer helpful?