BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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7.4%
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5.2%
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8%
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10%
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Detailed explanation-1: -When you’re looking for the percent markup, you subtract the old price from the new price ($70.20-$65=$5.20). Then you put the difference over the original price ($5.20/$65) and multiply it by 100. Your answer is 8% markup.
Detailed explanation-2: -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. For example, if your product costs $50 to make and the selling price is $75, then the markup percentage would be 50%: ( $75 – $50) / $50 = . 50 x 100 = 50%.
Detailed explanation-3: -Markup percentage measures the gap between what an item costs the seller and the price charged to the end customer. The higher the markup, expressed as a percentage of the cost, the more a company makes.