Fine Framings, a small framing shop, uses mark-up pricing to arrive at a final selling price.The business sells its frames at a price of R25, given a R15 unit cost.Fine Framings' mark-up on the selling price is ____, and its mark-up on cost is ____.
A)66-2/3%, 40%
B)40%, 66-2/3%
C)167%, 67%
D)250%, 100%

Question

Quizplus · Accepted Answer

To find the mark-up on selling price, we can use the formula:
mark-up on selling price = (selling price - unit cost) / selling price x 100%
= (25 - 15) / 25 x 100%
= 10 / 25 x 100%
= 40%
To find the mark-up on cost, we can use the formula:
mark-up on cost = (selling price - unit cost) / unit cost x 100%
= (25 - 15) / 15 x 100%
= 10 / 15 x 100%
= 66-2/3%
Therefore, the correct answer is B.

Fine Framings, a Small Framing Shop, Uses Mark-Up Pricing to Arrive