BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$7.00
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$3.00
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$13.33
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$13.00
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Detailed explanation-1: -When the cost is $5.00 you add 0.30 × $5.00 = $1.50 to obtain a selling price of $5.00 + $1.50 = $6.50. This is what I would call a markup of 30%. 0.70 × (selling price) = $5.00.
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: -Umer F. 250% is the final answer.
Detailed explanation-4: -To arrive at a 10% margin, the markup percentage is 11.1% To arrive at a 20% margin, the markup percentage is 25.0% To arrive at a 30% margin, the markup percentage is 42.9% To arrive at a 40% margin, the markup percentage is 66.7%