Assume a product costs 3 and a retailer sells it for 6 What is the percentage

# Assume a product costs 3 and a retailer sells it for

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118. Assume a product costs \$3 and a retailer sells it for \$6. What is the percentage markup on selling price and cost? A. Markup on selling price = 33%; Markup on cost = 50% B. Markup on selling price = 40%; Markup on cost = 66.6%C. Markup on selling price = 50%; Markup on cost = 100%D. Markup on selling price = 100%; Markup on cost = 100%E. Markup on selling price = 120%; Markup on cost = 150%Answer: cLearning Objective: 05-02 1-237
Topic: App: Discounts Lower the Price Blooms: Apply AACSB: Level of Difficulty: Hard Explanation: The percentage markup is based on either the product’s selling price or its cost. Percentage markup on selling price = amount added to cost/selling price = \$3/\$6 = 50%. Percentage markup on cost = amount added to cost/cost = \$3/\$3 = 100%. 119. It costs a company \$6 to manufacture a product. It sells the product for \$10 to a wholesaler who in turn sells it to a retailer for \$12. A customer of the retailer buys it for \$24. What was the markup on selling price for each member of this product's channel of distribution? 1-238
120. _____ is the additional sum of money expected from an investment over and above the original investment. 121. "Yo-to-go" is an entrepreneurial venture of a college student named Cathy Frank. She sells yogurts in cups and cones from a trailer at the beach during the tourist season. If Frank pays \$500 for cartons of yogurts then sells it all for \$1200, how much is her return on investment?

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• Summer '19