WAEC Commerce 2001 Question 4

Question 4

Business Calculations

The mark-up of a retailer represents the

  1. A.gross profit
  2. B.opening stock
  3. C.closing stock
  4. D.net profit
Show the answer and explanation

Answer: A (gross profit)

Explanation

Mark-up is the amount added to cost price to get selling price, i.e. gross profit expressed on cost.