Question: The purchase price of an article is $48. In order to include 10% of cost for overhead and to provide $12 of net profit, the markup should be
Options:
(A) 15%
(B) 25%
(C) 35%
(D) 40%
(E) 45% Random thoughts:
Cost price of article = 48$
% of overhead cost = 10
Net profit = 12 $
We need to calculate % markup
Net profit as % of cost price = (12/48)*100 = 25%
Total markup should be = 25 + 10 = 35% The final answer: (C).