A Retailer Sells All Goods on a Rate of Mark-Up

question 60

Multiple Choice

A retailer sells all goods on a rate of mark-up on cost of 25%. If she later marks down any unsold products to their cost, what is the rate of markdown?

• A) 25%
• B) 15%
• C) 30%
• D) 17.5%
• E) 20%

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Definitions:

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds.

Investment

The process of assigning funds or other resources with the aim of earning returns or profits.

Five-Year Period

A duration or span of time that lasts for five consecutive years.

Stock Valued

The process of determining the intrinsic value of a stock based on predictions of future earnings and the company's overall financial health.