Find the Equivalent Markup

question 3

Multiple Choice

Find the equivalent markup. Round to the nearest tenth of a percent.
-Markup on cost: Markup on selling price: 16.8%

• A)85.6%
• B)79.8%
• C)14.4%
• D)20.2%

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Definitions:

Maximum Profit

The highest possible financial gain a firm can achieve when the difference between total revenue and total cost is at its greatest.

Economic Profit

The split between a firm's entire proceeds and its total disbursements, embracing both acknowledged and veiled costs.

Normal Profit

The minimum profit necessary for a company to remain competitive in the market, equating to the opportunity cost of the resources employed.