BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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₱6 000.00
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₱7 000.00
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₱4 000.00
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₱5 000.00
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Detailed explanation-1: -Definition: Mark up refers to the value that a player adds to the cost price of a product. The value added is called the mark-up. The mark-up added to the cost price usually equals retail price.
Detailed explanation-2: -Profit margin refers to the revenue a company makes after paying COGS. The profit margin is calculated by taking revenue minus the cost of goods sold. However, the difference is shown as a percentage of revenue. The percentage of revenue that is gross profit is found by dividing the gross profit by revenue.
Detailed explanation-3: -Mark-on is the reduction of price on a product. Mark-down is the decrease of price on a product. Mark-up is the increase of price on peak seasons. Mark-up results to a negative profit in the business.