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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?

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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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Gwen
15 days ago
I thought salaries would be higher in this industry.
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Oliva
20 days ago
Wait, is that really enough for profit?
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Carey
26 days ago
So the mark-up must be 16%!
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Audria
1 month ago
That's a total of 84% in costs.
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Edmond
1 month ago
The mark-up is 16%? Well, at least they're not gouging their customers. Or are they...?
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Tammara
1 month ago
16% mark-up? That's it? I thought companies these days were aiming for at least 50% mark-up. Gotta step up their game!
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Wynell
2 months ago
Wait, does that mean the company is making a 16% profit? Seems a bit low, if you ask me.
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Candida
2 months ago
16% mark-up? Sounds about right. Time to start my own company and charge 51% for raw materials!
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Dan
2 months ago
Ah, the old "what's left is the mark-up" trick. Gotta love these accounting questions!
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Stevie
2 months ago
The mark-up must be the remaining percentage, which is 16%.
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Argelia
2 months ago
If I recall correctly, we need to add up the costs first and then determine the selling price to find the mark-up.
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Hermila
2 months ago
I feel like I might be mixing up mark-up and profit margin. Is there a formula we should use here?
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Gaynell
3 months 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
3 months 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
4 months ago
Alright, time to put my math skills to the test. I've got this!
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Jacqueline
4 months 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
4 months ago
Wait, I'm a bit confused. How do I calculate the mark-up from those percentages?
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Serita
4 months 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
4 months ago
Hmm, this looks like a straightforward calculation. I think I can figure this out.
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