BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Markup on cost
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Markup rate on cost
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Markup rate on selling price
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Selling price
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None
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Detailed explanation-1: -Markup is the difference between a product’s selling price and cost as a percentage of the cost. For example, if a product sells for $125 and costs $100, the additional price increase is ($125 – $100) / $100) x 100 = 25%.
Detailed explanation-2: -Cost-plus pricing is also known as markup pricing. It’s a pricing method where a fixed percentage is added on top of the cost it takes to produce one unit of a product (unit cost).
Detailed explanation-3: -According to Corporate Finance Institute, “markup is the difference between the selling price of a product and its cost.” The markup on cost is the amount added to the cost of a product or service to arrive at the selling price. The markup on cost is expressed in percentage terms.
Detailed explanation-4: -Cost price = Selling price − profit ( when selling price and profit is given ) Cost price = Selling price + loss ( when selling price and loss is given ) Cost price = 100 × S e l l i n g P r i c e 100 + P r o f i t % ( when selling price and profit % is given )