The amount added to a product's cost to meet profit targets is usually expressed as a percentage of
A) selling price.
B) selling costs.
C) component costs.
D) total costs.
E) wholesale price.

Question

Quizplus · Accepted Answer

The amount added to a product's cost to meet profit targets is usually expressed as a percentage of the selling price. This is known as the profit margin and is calculated by subtracting the cost of the product from the selling price and expressing it as a percentage of the selling price. This helps businesses determine how much they need to charge for their products in order to achieve their desired profit.

The Amount Added to a Product's Cost to Meet Profit