Markdown Formulas Quiz
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Questions and Answers

What is the formula for the rate of markup based on cost?

  • $rac{S}{M} imes 100$
  • $rac{C}{M} imes 100$
  • $rac{M}{C} imes 100$ (correct)
  • $rac{M}{S} imes 100$

    • If the cost of an item is ₱3,000 and the selling price is ₱5,000, what is the rate of markup based on cost?

  • 50%
  • 66.67% (correct)
  • 60%
  • 55%

    • What is the formula for the rate of markup based on selling price?

  • $rac{S}{M} imes 100$
  • $rac{M}{S} imes 100$ (correct)
  • $rac{C}{M} imes 100$
  • $rac{M}{C} imes 100$

    • A pair of jeans originally costs ₱2,500. If the rate of markup based on selling price is 40%, what is the new selling price?

    <p>₱3,500</p> Signup and view all the answers

    What might happen if a business imposes a significant temporary markdown?

    <p>Zero profit</p> Signup and view all the answers

    In a permanent markdown scenario, what is a common outcome for a business's profits?

    <p>Decrease in profits</p> Signup and view all the answers

    If a pair of shoes originally costs ₱1,200 and a temporary markdown of 20% is applied, what is the new selling price?

    <p>₱960</p> Signup and view all the answers

    How does a permanent markdown differ from a temporary markdown in terms of effect on profitability?

    <p>Permanent markdown decreases profit while temporary markdown may or may not impact profit.</p> Signup and view all the answers

    If a store applies a permanent markdown of 25% on all its products, what would be the effect on the break-even point?

    <p>Break-even point decreases</p> Signup and view all the answers

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