If the unit cost of output for a car is $8000 and the price is $10,000,what is the firms' markup over cost?
A) 125.0 percent
B) 25.0 percent
C) 80.0 percent
D) 11.1 percent
E) 20.0 percent.

Question

Quizplus · Accepted Answer

The markup over cost can be calculated using the following formula:

Markup = (Price - Unit Cost) / Unit Cost x 100

In this case, the unit cost of the car is $8000 and the price is $10000.

So, Markup = ($10000 - $8000) / $8000 x 100 = 25.0 percent

Therefore, the firm's markup over cost is 25.0 percent. Answer choice B is the best choice.

If the Unit Cost of Output for a Car Is