Vandelay Industries manufactures a range of latex products. To set the price of its products, George, the CEO of Vandelay, calculates the total cost associated with the manufacturing of each product, then multiples that by 1.5 to get the sales price. Therefore, a product that cost $10 manufacture would sell for $15. Vandelay's markup percentage is:
A) 50%
B) 150%
C) 25%
D) You cannot calculate Vandelay's markup from the information provided

Question

Quizplus · Accepted Answer

The markup percentage is calculated based on the cost price. Since the sales price is 1.5 times the cost, the markup is 0.5 times the cost, which is a 50% markup on the cost.

Vandelay Industries Manufactures a Range of Latex Products