A business includes 50% mark-up on all its products. This would mean margin of
Question 1 Report
A business includes 50% mark-up on all its products. This would mean margin of
Answer Details
A 50% mark-up means that the selling price of the product is 50% more than its cost price.
For example, if the cost price of a product is $100, adding a 50% mark-up would mean selling it for $150 (100 + 50% of 100).
To calculate the margin, we need to determine what percentage of the selling price is profit. Since the mark-up is 50%, we know that the cost price is 2/3 of the selling price (100% + 50% = 150%, and 100% is 2/3 of 150%).
Therefore, the margin is 1/3 of the selling price, which is 33 1/3%.
So the answer is: 33 1/3%.
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