A major big box store allegedly adds 5 percent to the total cost of production or cost of purchasing items it sells in its store,then adds to this number the additional costs and profits in order to arrive at the product's selling price.The 5 percent represents the ___ amount.
A) markup
B) income
C) equity
D) market share

Question

​A major big box store allegedly adds 5 percent to the total cost of production or cost of purchasing items it sells in its store,then adds to this number the additional costs and profits in order to arrive at the product's selling price.The 5 percent represents the ___ amount.
A) ​markup
B) ​income
C) ​equity
D) ​market share

Quizplus · Accepted Answer

Markup refers to the amount added to the cost of goods in order to arrive at the selling price. In this case, the big box store allegedly adds 5 percent as markup to the cost of production or cost of purchasing items it sells in its store.

​A Major Big Box Store Allegedly Adds 5 Percent to the Total

A Major Big Box Store Allegedly Adds 5 Percent to the Total