How is markup percentage calculated?
A) By dividing the selling price by fixed costs
B) By adding the selling price and the cost of advertising
C) By dividing the selling price by the dollar amount of the markup
D) By dividing the dollar amount of the markup by the selling price
E) By dividing inventory by the selling price

Question

Quizplus · Accepted Answer

Markup percentage is calculated by dividing the dollar amount of the markup by the selling price. For example, if a product has a selling price of $100 and a markup of $20, then the markup percentage would be (20/100) x 100 = 20%.

How Is Markup Percentage Calculated