Asked by Natasha Finkelstein on Jul 21, 2024
Verified
Is it possible for the rate of mark-up on selling price to exceed 100%? Explain.
Mark-Up
The amount added to the cost of a product or service to cover overhead and profit.
Selling Price
The amount of money for which a product is sold to the customer, after accounting for discounts, rebates, and other adjustments.
- Comprehend the distinction between the calculation of mark-up rates when applied to cost as opposed to selling price, and illustrate circumstances where it could exceed 100%.
Verified Answer
EI
Learning Objectives
- Comprehend the distinction between the calculation of mark-up rates when applied to cost as opposed to selling price, and illustrate circumstances where it could exceed 100%.