CIPS L4M5 Exam - Topic 3 Question 93 Discussion

Actual exam question for CIPS's L4M5 exam

Question #: 93
Topic #: 3

[All L4M5 Questions]

In a detailed cost breakdown, a company has a salary cost of 9%, raw materials cost 51% and overheads cost 24%. Which of the following represents the mark-up of that company?

BApproximately 19%

AApproximately 84%

CApproximately 116%

DApproximately 16%

Show Suggested Answer

Suggested Answer: B

Mark-up is the amount added to the cost of an item to get to its selling price and is expressed as a percentage.

Mark-up (%) = (Price - Cost) / Cost x 100

= (100 - 9 - 51 - 24) / (9 +51 +24) x 100 = 16 / 84 x 100 = 19.04%

LO 2, AC 2.1

by Latrice at Jan 26, 2026, 12:26 AM

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Gaynell

5 days ago

This seems similar to a practice question we did last week. I think mark-up is calculated on top of the total costs, right?

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Francine

10 days ago

I remember we discussed mark-up in class, but I'm not entirely sure how to calculate it from these percentages.

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Donte

15 days ago

Alright, time to put my math skills to the test. I've got this!

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Jacqueline

20 days ago

I remember learning about this in class. I think I can use the information given to solve for the mark-up.

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Raylene

26 days ago

Wait, I'm a bit confused. How do I calculate the mark-up from those percentages?

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Serita

1 month ago

Okay, let me think this through. I need to find the total of those percentages and then subtract from 100%.

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Carrol

1 month ago

Hmm, this looks like a straightforward calculation. I think I can figure this out.

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