The cost of a good is $1,500.A seller sells it at a markup of $500.The profit margin is:
A) 20 percent.
B) 30 percent.
C) 25 percent.
D) 15 percent.
E) 40 percent.

Question

Quizplus · Accepted Answer

Markup = Selling price - Cost price. 
Here, the selling price = Cost price + Markup = $1,500 + $500 = $2,000.
Profit margin = (Markup/Cost price) × 100% = (500/1500) × 100% = 33.33...%
However, the options only give approximate values, so the closest option is C, 25 percent.

The Cost of a Good Is $1,500