Fine Framings, a Small Framing Shop, Uses Mark-Up Pricing to Arrive

question 13

Multiple Choice

Fine Framings, a small framing shop, uses mark-up pricing to arrive at a final selling price.The business sells its frames at a price of R25, given a R15 unit cost.Fine Framings' mark-up on the selling price is ____, and its mark-up on cost is ____.

• A)66-2/3%, 40%
• B)40%, 66-2/3%
• C)167%, 67%
• D)250%, 100%

Understand the concepts of producer surplus and consumer surplus before and after trade is introduced or restricted.

Appreciate the arguments for and against trade restrictions, including jobs, unfair competition, and protection-as-a-bargaining-chip.

Comprehend how unilateral, bilateral, and multilateral trade agreements impact domestic and international markets.

Identify the gains from international trade in terms of total surplus and the distribution of benefits among consumers and producers.

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Definitions:

Support Department Costs

Expenses associated with departments that do not directly produce goods or services but support those who do, like maintenance or administration.

Manufacturing Costs

Expenses directly tied to the process of producing finished goods, including raw materials, labor, and overhead costs.

Period Costs

Costs that are not directly tied to the production process and are expensed within the period they are incurred, such as selling, general, and administrative expenses.

Allocation Base

A measure or quantity used as a basis for distributing costs among various cost objects, such as products or departments.