Cullen Company Has a Normal Markup of 40

question 34

Multiple Choice

Cullen Company has a normal markup of 40%. Its cost-to-sales ratio is

• A) 71.4%.
• B) 67.5%.
• C) 60%.
• D) Cannot be calculated.

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Definitions:

Self-Serving Bias

A cognitive bias that involves attributing positive events to one's own character but attributing negative events to external factors, thereby protecting self-esteem.

Attributions

The process by which individuals explain the causes of behavior and events, attributing them to internal dispositions or external situations.

Favorable

Describes something that is advantageous, positive, or beneficial in nature.

Attribution Theory

A concept in psychology that explains how individuals pinpoint the causes of their own and others' behavior.