Business FinancesQuestion 298 of 1632
A contractor applies a 25% markup on cost. Expressed as a margin on the selling price, this 25% markup equals approximately:
a.20%
b.25%
c.33%
d.15%
Explanation
A 25% markup on a cost of $100 produces a selling price of $125. The margin = profit ÷ selling price = $25 ÷ $125 = 20%. A 25% markup always equals a 20% margin.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)