By definition, a markup of $1 on a cost of $2 translates to a markup of 40 percent.

Name: By definition, a markup of $1 on a cost of $2 translates to a markup of 40 percent.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To calculate the percentage markup, divide the markup by the cost:
Markup percentage = (Markup / Cost) x 100%
In this case, 1 markup on a cost of 2 would give:
Markup percentage = (1 / 2) x 100% = 50%
Therefore, the statement is false.

By Definition, a Markup of $1 on a Cost of $2