Asked by Ziheng Zhang on Apr 24, 2024
M Studios buys cameras at a unit cost of $140. Their operating expense is 40% per unit of the selling price, and their desired unit operating profit is 25% of the selling price. What is M Studios' rate of mark-up on selling price?
A) 65%
B) 22.75%
C) 75%
D) 25%
E) 60%
Operating Expense
Costs associated with the day-to-day functioning of a business, excluding production costs but including items like rent, utilities, and salaries.
Operating Profit
The profit earned from a firm's core business operations, excluding deductions of taxes and interest.
Mark-up
The amount added to the cost price of goods to cover overhead and profit; typically expressed as a percentage of the cost.
- Acquire the ability to analyze and figure out mark-up rates and selling prices in commercial settings.
Learning Objectives
- Acquire the ability to analyze and figure out mark-up rates and selling prices in commercial settings.