Business FinancesQuestion 1110 of 1605
A contractor applies a 100% markup on a $3,000 cost. What margin does that represent, and what is the price?
a.Price $6,000; margin 100%
b.Price $6,000; margin 33%
c.Price $6,000; margin 50%
d.Price $3,000; margin 50%
Explanation
100% markup doubles cost: price = $3,000 + $3,000 = $6,000. Margin = profit / price = $3,000 / $6,000 = 50%. A 100% markup always equals a 50% margin.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)