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Step2247 [10]
4 years ago
14

A storere sells CD's for $15 CDs for 15. If the unit cost per CD is $11 what is the stores markup on the selling price? 

Business
2 answers:
nika2105 [10]4 years ago
8 0

Answer:

The correct answer would be option C, 27%.

Explanation:

Difference between the Cost of the product and the Selling Price of that product is called the Markup on selling Price. In this example, a store keeper sells CDs at a price of $15. But the cost of each CD is $11, which means, he takes $4 profit on each CD sold. So the markup on selling price can be calculated as follows:

Markup on Selling Price = ( (Selling Price - Cost of the Product) / Selling Price) * 100

Markup on Selling Price = ( ($15 - $11) / $15 ) *100

Markup on Selling Price = ( $4 / $15 ) * 100

Markup on Selling Price =  0.27 *100

Markup on Selling Price = 27%

Snezhnost [94]4 years ago
3 0

Answer: c. 27%

The purpose of markup percentage is to find the ideal sales price of a product. For example, if the CD costs $11 each, and the selling price is $15, then the store’s markup on the unit cost is 4/11 or 37% while store’s mark up on selling price is 4/15 or 27%.

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It is noteworthy that in such research work, in other to validate the study, the supervisors are usually required to call 10 to 25 percent of the respondents to inquire whether the field workers actually conducted interviews.

Remember, if such control policies are not in place, the field workers may not be performimg their duties, that is why the supervisors make such calls to monitor the field workers performance.

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Therefore, the balance in the account will be $132860.

Read related link on:

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