A marketer who has unit costs of $16 and wants to earn a 20 percent markup on sales would charge a markup price of $20.

Question

Quizplus · Accepted Answer

To calculate the markup price, first, we need to calculate the cost-plus markup.

Cost-plus markup = Unit cost + (Markup rate * Unit cost)
Cost-plus markup = $16 + (0.20 * $16)
Cost-plus markup = $16 + $3.20
Cost-plus markup = $19.20

Then, we round up the cost-plus markup to the nearest whole number to get the markup price.

Markup price = $20

Therefore, the statement is true.

A Marketer Who Has Unit Costs of $16 and Wants