BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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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. 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 = .
Detailed explanation-2: -Firms should set the price as a markup over marginal cost:This expression comes from combining the formula for marginal revenue and the condition that marginal revenue equals marginal cost. See the toolkit for more details. markup = 1 − ( elasticity of demand) − 1 .
Detailed explanation-3: -Determine the markdown. Divide the difference between the prices by the actual selling price. Then, multiply this result by 100. The result represents the markdown percentage.