If the Rate of Mark-Up on an Item Is 80

question 230

Multiple Choice

If the rate of mark-up on an item is 80% of cost and it is later sold after a 40% markdown, what is the rate gross profit that was actually realized?

• A) 40% of cost
• B) 32% of cost
• C) -16% of cost
• D) 8% of cost
• E) Zero

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Definitions:

Linear Relationship

A linear relationship describes a straight-line relationship between two variables, where a change in one variable is proportional to a change in the other.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, commonly denoted as alpha.

Sunshine

The light and warmth that comes from the sun, essential for life on Earth and influencing weather and climate.

Standard Error of Estimate

A measure of the accuracy of predictions made with a regression line, representing the average distance that the observed values fall from the regression line.