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
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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?
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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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