BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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48%
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38%
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28%
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18%
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Detailed explanation-1: -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-2: -Markup percentage is calculated by dividing the gross profit of a unit (its sales price minus its cost to make or purchase for resale) by the cost of that unit. If an item is priced at $12 but costs the company $8 to make, the markup percentage is 50%, calculated as (12 – 8) / 8.
Detailed explanation-3: -Markup % = (selling price – cost) / cost x 100 Learn more in CFI’s financial analysis courses online!
Detailed explanation-4: -For example, if a product cost $50 and the business wanted to make a 15 percent profit, then the selling price would be $57.50. In this example, our cost was $50 and the profit plus one would be 1.15.