A percentage markup of 50 percent on selling price would be the same as a 50 percent markup on cost.

Question

Quizplus · Accepted Answer

A percentage markup of 50 percent on selling price would result in a smaller profit margin compared to a 50 percent markup on cost. For example, if the cost of a product is $100, then a 50 percent markup on cost would result in a selling price of $150 and a profit margin of $50. However, a 50 percent markup on selling price would result in a selling price of $200 and a profit margin of only $66.67. Therefore, the two markups would not be the same.

A Percentage Markup of 50 Percent on Selling Price Would