What is "markup"?
A) Markup is the point at which the firm covers the fixed and variable costs.
B) Markup is the amount of money left over after all expenses have been deducted from revenues.
C) Markup is an amount equal to demand divided by product cost.
D) Markup is an amount added to the cost of the item to arrive at the selling price.
E) Markup is the point where demand equals supply.

Question

Quizplus · Accepted Answer

Markup is the amount added to the cost of an item in order to arrive at the selling price. It is typically expressed as a percentage of the cost. This allows businesses to generate a profit on their sales and cover their operating expenses. Options A, B, C, and E are not accurate descriptions of markup.

What Is "Markup