Direct cost is $48,000 and markup is 18 percent of cost. What selling price results?
Correct Answer
D) $56,640.
Markup is $48,000 x 18 percent = $8,640. Selling price is $56,640.
Why This Is the Correct Answer
Markup is $48,000 x 18 percent = $8,640. Selling price is $56,640.
Why the Other Options Are Wrong
Option A: $54,240.
$54,240. is below the supported result for markup; it likely uses the wrong base, period, or account bucket.
Option B: $58,536.
$58,536. is above the supported result for markup; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $66,000.
$66,000. is above the supported result for markup; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Two shelves for markup: cost side first or price side first.
Reference Hint
Study anchor (closed-book): memorize Markup from CSLB Law and Business Study Guide; California tax and payroll guidance / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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