Which of the Following Can Be Used to Determine Markup

question 18

Multiple Choice

Which of the following can be used to determine markup percentage in the case of cost-plus pricing?

• A) Target annual operating income / Invested capital
• B) Estimated annual dividend / Invested capital
• C) Target sales revenue / Target annual operating income
• D) Estimated annual dividend / Target annual operating income

---

Definitions:

Expected Value

The calculated average of all possible values for a random variable, considering the probabilities of each outcome.

Risk Lover

An individual or entity that prefers or seeks out investment opportunities with higher risk for the potential of higher returns.

Insurance

A financial product that provides protection against potential financial losses or liabilities arising from specific risks.

Risk Averse

Describes individuals or entities that prefer to avoid risk and would rather choose options with more certain outcomes over riskier ones.