A Dining Set Costs a Company $2,300 to Manufacture

question 17

Multiple Choice

A dining set costs a company $2,300 to manufacture. If it sells for $4,945, what is the percent markup based on cost?

• A) 15.00%
• B) 46.51%
• C) 115.00%
• D) 53.49%

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Definitions:

Contract Rate

The agreed-upon rate or price specified in a contract for the provision of goods or services.

Effective Rate

The actual interest rate realized on an investment, taking into account the effect of compounding over a given time period.

Bond Premium

The surplus value of a bond beyond its principal amount when sold in the market.

Term Bond

Bonds that have a specified maturity date on which the principal or face value is payable to bondholders.