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A 20 percent markup on cost is not the same as a 20 percent margin because margin is based on what?

Correct Answer

C) Selling price.

Margin is profit divided by selling price; markup is profit divided by cost.

Answer Options
A
Payroll tax only.
B
Material cost only.
C
Selling price.
D
Accounts payable.

Why This Is the Correct Answer

Margin is profit divided by selling price; markup is profit divided by cost.

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