A standard markup is often set close to the firm's
A) gross margin.
B) net profits.
C) overheads.
D) operating costs.
E) competitors' costs.

Question

Quizplus · Accepted Answer

A standard markup is usually set close to the firm's gross margin, which is the difference between the selling price and the cost of goods sold. This ensures that the company can cover its direct costs and fixed overheads while also generating a profit.

A Standard Markup Is Often Set Close to the Firm's