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:

Previous Balance

The amount of money owed or available in an account before the latest transactions.

Cycle Closing

The process of concluding a billing or operational period at the end of a cycle.

Simple Interest

The fundamental interest calculation.

Monthly Basis

A frequency term that indicates something occurs every month or is calculated on a monthly basis.