The costs of merchandise used in computing markup include wholesale price,incidental costs,and profit minus any discounts.

Question

Quizplus · Accepted Answer

Markup is calculated by subtracting the cost of merchandise from its selling price. The cost of merchandise includes the wholesale price of the product plus any incidental costs associated with it, such as taxes or shipping fees. The markup also includes profit, which is generally calculated as a percentage of the selling price. Any discounts offered by the wholesaler or retailer are subtracted from the profit when computing the final markup. Therefore, the statement is true.

The Costs of Merchandise Used in Computing Markup Include Wholesale