If a retailer adds a 25-cent markup to a product which costs the retailer $1.00, then according to the text the retailer's markup is 20 percent.

Question

Quizplus · Accepted Answer

Markup percentage is calculated by dividing the markup amount by the cost and multiplying by 100. In this case, the markup amount is $0.25 and the cost is $1.00, so the markup percentage is (0.25/1.00)*100 = 25%. Therefore, the statement is false.

If a Retailer Adds a 25-Cent Markup to a Product