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What Is the Effect of Net Markups on the Cost-Retail

Question 75

Multiple Choice

What is the effect of net markups on the cost-retail ratio when using the conventional retail method?


A) Increases the cost-to-retail ratio.
B) No effect on the cost-to-retail ratio.
C) Depends on the amount of the net markdowns.
D) Decreases the cost-to-retail ratio.

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