If the selling price of a firm's product is $500 and the estimated average cost of producing this product is $400, what is the firm's markup?
A)15 percent
B)20 percent
C)25 percent
D)40 percent

Name: If the selling price of a firm's product is $500 and the estimated average cost of producing this product is $400, what is the firm's markup? A)15 percent B)20 percent C)25 percent D)40 percent
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Markup = (Selling price - Cost) / Cost= (500 - 400) / 400= 100 / 400= 0.25= 25%

If the Selling Price of a Firm's Product Is $500