Fine Framings, a Small Framing Shop, Uses Markup Pricing to Arrive

question 55

Multiple Choice

Fine Framings, a small framing shop, uses markup pricing to arrive at a final selling price. The firm sells its frames at a price of $10, given a $6 unit cost. Fine Framings' markup on the selling price is ____, and its markup on cost is ____.

• A) 66.66%, 40%
• B) 40%, 66.66%
• C) 40%, 60%
• D) 55%, 45%

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which in turn affects the likelihood of that behavior being repeated.

Law Of Effect

A principle in psychology that suggests behaviors followed by favorable consequences become more likely, whereas behaviors followed by unfavorable consequences become less likely.

Thorndike

American psychologist famous for his work on learning theory that led to the development of operant conditioning within behaviorism.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a reflexive response without any prior learning.