If the selling price is $35 and the cost is $21, the markup on selling price is 40%.

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $25.99Unlock all

Prepare for the AAMI Small Business Management Test with flashcards and multiple choice questions; each question comes with hints and explanations. Get exam ready!

Multiple Choice

If the selling price is $35 and the cost is $21, the markup on selling price is 40%.

Explanation:
Markup on selling price means how much of the selling price is added on top of cost, expressed as a percentage of the selling price. It’s calculated as (selling price − cost) ÷ selling price. Here, 35 − 21 = 14, and 14 ÷ 35 = 0.40, which is 40%. So the statement is true. If you were using a different base, you’d get a different number. For example, markup relative to cost would be 14 ÷ 21 ≈ 66.7%, not asked here. The other options (60% or 30%) don’t match the 40% when you use the selling price as the base.

Markup on selling price means how much of the selling price is added on top of cost, expressed as a percentage of the selling price. It’s calculated as (selling price − cost) ÷ selling price. Here, 35 − 21 = 14, and 14 ÷ 35 = 0.40, which is 40%. So the statement is true.

If you were using a different base, you’d get a different number. For example, markup relative to cost would be 14 ÷ 21 ≈ 66.7%, not asked here. The other options (60% or 30%) don’t match the 40% when you use the selling price as the base.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy