Which of the following statements about markups is true?
A)A firm can lose money even when using a high markup.
B)Markup percentages are computed as a percentage of the cost of the product.
C)It's easier for a producer to administer the prices consumers pay for products if the markup used varies from one intermediary to the next.
D)The lower the markup,the lower the profit.
E)None of these statements is true.

Question

Quizplus · Accepted Answer

A high markup may result in a price that's too high-a price at which few customers will buy.So high markups may lead to low profits.

Which of the Following Statements About Markups Is True