1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
OlgaM077 [116]
3 years ago
8

If gross margin on a product is 25% what is the corresponding markup percentage​

Business
1 answer:
Oxana [17]3 years ago
3 0

Answer:

With a selling price of $100 and a cost of $75, the $25 markup as a percentage of the $75 cost is 33.33% ($25/$75). The gross profit of $25 ($100 - $75) also means a gross margin of 25% ($25 gross profit divided by the selling price of $100).

Explanation:

Let's begin by assuming that a company's product has a cost of $75 and the company desires a 25% gross margin (or 25% of the selling price). Let's use "SP" to indicate the product's required selling price and "MU$" to represent the gross profit, and state the gross margin as 0.25SP. This means that:

SP = Cost + MU$

SP = $75 + MU$

Since MU$ must be 25% of SP, we can state: SP = $75 + 0.25SP

Restating the previous point, we have: SP - 0.25SP = $75

Restating the previous point, we have: 0.75SP = $75

After dividing each side of the equation by 0.75, we have: SP = $100

You might be interested in
Which of the following statements about credit cards is true?
scoray [572]

Answer:

D. Credit card companies usually charge higher interest rates for cash advances than for purchases.

Explanation:

A credit card can be defined as a small rectangular-shaped plastic card issued by a financial institution to its customers, which typically allows them to purchase goods and services on credit based on the agreement that the amount would be paid later with an agreed upon interest rate.

Generally, small businesses or companies who avail their customers the opportunity to pay using a credit card will increase the number of customers that would patronize them because they are typically buying the goods and services on credit.

Also, when a credit card holder is requesting for an advance on cash from its merchant or financial institution, they are usually charged more interest rates compared to when using the card to make a purchase.

Hence, the statement which is true about credit card is that, credit card companies usually charge higher interest rates for cash advances than for purchases.

3 0
3 years ago
1. If Net Capital Outflow increases, the ________ of dollars in the Foreign Currency Exchange Market will increase, causing the
earnstyle [38]

Answer:

1, supply, depreciate

Explanation:

If Net Capital Outflow increases, the supply of dollars in the Foreign Currency Exchange Market will increase, causing the real exchange rate to depreciate

3 0
3 years ago
Read 2 more answers
A surplus or shortage in the money market is eliminated by adjustments in the price level according to classical theory, but not
Andre45 [30]

Answer:

The correct answer is option A.

Explanation:

According to the classical theory, the quantity of money  is directly related to price level. So, any shortage or surplus in the money market can be corrected by increasing or decreasing price level.

According to the liquidity preference theory, however, money is demanded for transactionary, precautionary and speculative motive. So, only price level does not affects the quantity of money. Interest rates also effect the demand for money.

So, option A is the correct answer.

8 0
3 years ago
1. The reason why the Demand Curve slopes downward is because -
denis23 [38]

Answer:

The right answer is C; There is an inverse relationship between price and quantity demanded

Explanation:

The law of demand indicates that there is an inverse relationship between the price and the quantity demanded of a good.

This means that if the price of a good increases, then demand decreases and if the price decreases, demand tends to rise at the same time.

4 0
4 years ago
Which of the following about associate's degrees are true? a. You may transfer part or all of your associate's degree courses to
grin007 [14]
C, associates degree doesn't offer financial aid
8 0
4 years ago
Read 2 more answers
Other questions:
  • Shoe Shine is a local retail shoe store located on the north side of Centerville. Annual demand for a popular sandal is 500 pair
    14·1 answer
  • Augie purchased one new asset during the year (five-year property) on November 10, 2019, at a cost of $660,000. She would like t
    8·1 answer
  • How did the 1950s get their money
    6·1 answer
  • An investment that you are considering promises to pay $2000 semiannually for the next two years, beginning six months from now.
    7·1 answer
  • A consumer equilibrium is a situation in which a consumer has allocated​ _____ of her income in a way that​ _____. A. ​all; maxi
    15·2 answers
  • In France, fine dressmaking and tailoring have been a tradition predating Queen Marie Antoinette. Cloth manufacturers, design sc
    13·1 answer
  • Jeff wants to open a basic savings account. He should go to
    13·1 answer
  • Regular bank examinations and restrictions on asset holdings indirectly help to reduce the ________ problem because, given fewer
    14·1 answer
  • Under absorption costing, which of the following costs would not be included in finished goods inventory? a.overtime wages paid
    6·1 answer
  • Karen Moore is a new employee with Cars R Us. One of her first responsibilities as the new HR Director is to create an incentive
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!