If the optimal markup on price is 50%, the optimal markup on cost is: a. 100% b. 75% c. 50% ...

Question:

If the optimal markup on price is 50%, the optimal markup on cost is:

a. 100%

b. 75%

c. 50%

d. 25%

Markup and Selling Price:

In the domain of finance, the markup amount desired per unit of product is governed by the investment made in operating assets and the required rate of return. The selling price per unit of a product considers the unit cost and unit markup amount.

Answer and Explanation: 1

Become a Study.com member to unlock this answer!

View this answer

The correct answer is option a. 100%.

Let's say the cost per unit is C and the price per unit is P.

The price per unit (P) is given by:

{eq}\begin{...

See full answer below.


Learn more about this topic:

Loading...
How to Calculate Markup: Definition & Formula

from

Chapter 12 / Lesson 22
112K

Learn about markup and its benefits. Understand the markup formula, and learn how to calculate markup. See how to find markup percentage with examples.


Related to this Question

Explore our homework questions and answers library