Which Statement Is Correct to Find the Markup Amount When

question 2

Multiple Choice

Which statement is correct to find the markup amount when the cost and selling price are known?

• A) The markup amount is the sum of the selling price and the cost.
• B) The markup amount is the difference between the selling price and the cost.
• C) The markup amount is the markup rate times the cost.
• D) The markup amount is the difference between the markup rate and 100%.

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Definitions:

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting their perceived value of the product.

Oral Auction

A traditional auction where bids are announced by participants verbally until the highest bid is reached.

True Values

The actual, undistorted measures or worth of an item, free from biases or errors.

Oral Auction

A live auction where bids are made through spoken communication amongst bidders.