A Local Dealer Sells Baseballs for $25 Each

question 40

Multiple Choice

A local dealer sells baseballs for $25 each. If $6.23 is the cost, what is the percent of markup on the selling price?

• A) 75.1%
• B) 42.9%
• C) 8.3%
• D) 57.1%

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Definitions:

Percent of Sales Method

A forecasting technique that estimates future financial statements based on a predicted sales growth rate and historical financial ratios.

Analysis of Receivables

The process of examining the accounts receivable of a business to assess their collectability and manage credit risk.

Accrued Interest

Interest that has been incurred but not yet paid in cash during a specific time period.

Note

A financial instrument that represents a debt or obligation between two parties, wherein the issuer promises to pay the holder a certain amount of money at a future date.