Which term describes the amount added to cost to determine selling price?

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Multiple Choice

Which term describes the amount added to cost to determine selling price?

Explanation:
Markup is the amount added to cost to determine selling price. It can be a fixed dollar amount or a percentage of cost, and is used to cover expenses and achieve a desired profit. For example, a $100 cost with a 40% markup results in a $140 selling price, or a $25 fixed markup on a $100 item yields $125. The other terms don’t describe pricing increases: linen is fabric material, mean is an average, and marker is a tool for marking.

Markup is the amount added to cost to determine selling price. It can be a fixed dollar amount or a percentage of cost, and is used to cover expenses and achieve a desired profit. For example, a $100 cost with a 40% markup results in a $140 selling price, or a $25 fixed markup on a $100 item yields $125. The other terms don’t describe pricing increases: linen is fabric material, mean is an average, and marker is a tool for marking.

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