ECONOMICS
INFLATION
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Cap
|
|
|
30 caps
|
|
|
Summer season
|
|
|
65%
|
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: -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.
Detailed explanation-3: -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-4: -For example, with a rate of 40% and a cost of $100, the markup price is simply $100 + $100 + 40% = $100 + $100 * 0.4 = $100 + $40 = $140 which is the price with markup included.