While the _____ Markup Is Based on the Original Retail

question 18

Multiple Choice

While the _____ markup is based on the original retail value,the _____ markup is based on actual prices received for the merchandise.

• A)initial;actual
• B)initial;maintained
• C)planned;actual
• D)planned;maintained

---

Definitions:

Operating Income

Earnings from a company’s core business operations, excluding deductions for interest and taxes.

Variable Costs

Costs that fluctuate in direct proportion to changes in levels of production or sales volumes.

Fixed Costs

Financial obligations like rent, wages, and insurance that are stable and do not vary with the level of goods manufactured or sold.

Break-even

The point at which total revenues equal total costs, resulting in neither profit nor loss for the business.