Fine Framings,a small framing shop,uses markup pricing to arrive at a final selling price.The firm sells its frames at a price of $25,given a $15 unit cost.Fine Framings' markup on the selling price is ____,and its markup on cost is ____.
A)66-2/3%,40%
B)40%,66-2/3%
C)167%,67%
D)250%,100%

Question

Quizplus · Accepted Answer

Markup on selling price is calculated as (Selling Price - Cost) / Selling Price = ($25 - $15) / $25 = 40%. Markup on cost is calculated as (Selling Price - Cost) / Cost = ($25 - $15) / $15 = 66-2/3%.

Fine Framings,a Small Framing Shop,uses Markup Pricing to Arrive at a Final