The Maximum Markup at Costco Is 15

question 114

Multiple Choice

The maximum markup at Costco is 15%.What does that mean?

• A) customers never pay less than 15% more than Costco paid for the item
• B) customers never pay more than 15% more than Costco paid for the item
• C) the lowest sale price is 15% off the original price
• D) customers always pay exactly 15% more than Costco paid for the item

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Definitions:

Revenues

The total amount of money received by a company for goods sold or services provided during a certain time period.

Equity

The residual interest in the assets of an entity after deducting liabilities, often referred to as shareholder's equity or owner's equity.