A profit calculated by adding a percentage to the costs of production is called: A. Mark-up B. Breakeven. C. Margin. D. Mark-down
Question
A profit calculated by adding a percentage to the costs of production is called:
- A. Mark-up
- B. Breakeven.
- C. Margin.
- D. Mark-down
Solution
Answering the Question
To determine the correct answer, let's clarify the terms involved:
-
Mark-up: This refers to the amount added to the cost of a product to determine its selling price. It is expressed as a percentage of the cost price.
-
Breakeven: This is the point at which total revenue equals total costs, resulting in neither profit nor loss.
-
Margin: This is the difference between the selling price and the cost of the product, often expressed as a percentage of the selling price.
-
Mark-down: This refers to a reduction in the selling price of a product, typically to encourage sales or clear inventory.
Final Answer
The correct answer is: A. Mark-up.
Similar Questions
Profit margin is calculated by dividing:Question 2Answera.sales by cost of sales.b.profit by total assetsc.profit by equityd.profit by net sales
When you minus direct production costs from selling price, you get your profit margin. Group of answer choicesTrueFalse
1% improvement in ______ would create the biggest improvement of operating profit for a company. 1 pointFixed CostPriceSales VolumeVariable Cost
45.A change in total cost caused by adding one more unit to the production total is called: A. Fixed cost. B. Variable cost. C. Marginal cost D. Total cost
Contribution margin is also known as .a.net profit.b.gross profit.c.net loss.d.marginal income .
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.