A Retailer Sells All Goods on a Rate of Mark-Up

question 42

Multiple Choice

A retailer sells all goods on a rate of mark-up on selling price of 25%. If she later marks down any unsold products to their cost, what is the rate of markdown?

• A) 25%
• B) 33.3%
• C) 20%
• D) 30%
• E) 22.5%

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Definitions:

Customer-Driven Production

A strategy where the production process is dictated by customer demand, ensuring products meet the specific needs and preferences of the customer.

Hand-Made Purses

Purses or bags that are crafted manually without the use of automated machinery.

Physical Factors

Elements of the physical environment that can affect businesses and individuals, such as geography, climate, and natural resources.

Local Labor Costs

The expenses associated with employing labor in a specific geographic location, including wages, benefits, and taxes.