ICAEW BIP · Chapter 4 · Question 1 of 11
The full cost of a product is £64 per unit. The company sets prices using a mark-up of 25% on full cost. What is the selling price?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) £80.00
Explanation
A mark-up is a percentage of cost. Selling price = £64 x 1.25 = £80.00. £85.33 would be the price if 25% were a margin on selling price.
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