Question

It costs Rockport Shrimp Fisheries, Inc. $30 to catch, process, freeze, package and ship 5-pound packages of gulf shrimp. Assume that it applies a 60 percent markup on its cost of its shrimp products. This means that the company will charge customers ________for each 5-pound package.a) $40 b) $48 c) $50 d) $54 e) $60

Answer 1

Answer:

=$48

Explanation:

Mark-up refers to the intended profit margin: It is selling price -cost of production.

For  Rockport Fisheries:  cost of production is $ 30

Mark -up is 60 %. i.e., profit margin equal to 60 % of cost price

Selling price= cost +mark up

  = $30 + (60/100 x100)

  =$30+$18

  =$48