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Imagine you discuss profit on an item for sale in your business as a percentage of the selling price. Assume the profit element represents 50% of the selling price. Is mark-up or margin being described here?
Suggested Answer: B
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When profitability is spoken of as a % the selling price, the profit element is called the margin.
12 comments · newest first
OM
Omega
2 months ago
I agree, margin makes sense. Mark-up is different.
MI
Mickie
3 months ago
Definitely margin! It's 50% of the selling price.
LE
Lettie
3 months ago
I think it's margin. Profit is based on selling price.
AN
Angella
3 months ago
Agreed, it's margin. Mark-up is calculated differently!
MY
My
3 months ago
Wait, are we sure about that? Sounds confusing.
JE
Jennifer
3 months ago
50% of the selling price? That's margin for sure!
DE
Deonna
4 months ago
I thought it was mark-up, but now I'm not so sure.
SH
Shannan
4 months ago
That's definitely margin, not mark-up.
TA
Tashia
4 months ago
I keep mixing them up! Is it possible that both terms could apply in different contexts?
DE
Derrick
4 months ago
This sounds similar to a practice question we did last week. I believe it's margin because it’s 50% of the selling price, not the cost.
VA
Vashti
4 months ago
I'm not entirely sure, but I remember mark-up is usually based on cost, while margin is based on selling price.
LU
Luis
4 months ago
I think this is about margin since it talks about profit as a percentage of the selling price, right?