Assume a product costs $3 and a retailer sells it for $6. What is the percentage markup on selling price and cost?
A) Markup on selling price = 33%; Markup on cost = 50%
B) Markup on selling price = 40%; Markup on cost = 66.6%
C) Markup on selling price = 50%; Markup on cost = 100%
D) Markup on selling price = 100%; Markup on cost = 100%
E) Markup on selling price = 120%; Markup on cost = 150%

Question

Quizplus · Accepted Answer

The markup on cost is calculated as ((Selling Price - Cost) / Cost) * 100 = (($6 - $3) / $3) * 100 = 100%. The markup on selling price is calculated as ((Selling Price - Cost) / Selling Price) * 100 = (($6 - $3) / $6) * 100 = 50%.

Assume a Product Costs $3 and a Retailer Sells It