9 Questions
What is the formula for the rate of markup based on cost?
$rac{M}{C} imes 100$
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?
66.67%
What is the formula for the rate of markup based on selling price?
$rac{M}{S} imes 100$
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?
₱3,500
What might happen if a business imposes a significant temporary markdown?
Zero profit
In a permanent markdown scenario, what is a common outcome for a business's profits?
Decrease in profits
If a pair of shoes originally costs ₱1,200 and a temporary markdown of 20% is applied, what is the new selling price?
₱960
How does a permanent markdown differ from a temporary markdown in terms of effect on profitability?
Permanent markdown decreases profit while temporary markdown may or may not impact profit.
If a store applies a permanent markdown of 25% on all its products, what would be the effect on the break-even point?
Break-even point decreases
Test your knowledge on markdowns with this quiz that covers the formulas related to selling price, original price, and markdown rate. Learn about the differences between temporary and permanent markdowns and their purposes.
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