Business FinancesQuestion 1104 of 1605
A 50% markup on cost is equivalent to what gross profit margin?
a.40%
b.25%
c.50%
d.33.3%
Explanation
Take cost = $100. A 50% markup adds $50, giving a price of $150. Margin = profit / price = $50 / $150 = 33.3%. Markup and margin are different: markup is on cost, margin is on price.
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