Under a cost-plus 75% pricing policy, what is the markup amount on a product that costs $80?

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Prepare for the Professional Golf Management (PGM) 3.1 All Levels Test with multiple-choice questions and explanations. Enhance your knowledge and excel in your exam!

Multiple Choice

Under a cost-plus 75% pricing policy, what is the markup amount on a product that costs $80?

Explanation:
Under cost-plus pricing, you add a markup that is a percentage of the cost. The markup rate here is 75%, so the markup amount is 0.75 times the cost: 0.75 × 80 = 60. Therefore, the markup is 60 dollars. If you needed the final selling price, you would add that to the cost (80 + 60 = 140). The other options reflect different percentages of the cost, not 75%.

Under cost-plus pricing, you add a markup that is a percentage of the cost. The markup rate here is 75%, so the markup amount is 0.75 times the cost: 0.75 × 80 = 60. Therefore, the markup is 60 dollars. If you needed the final selling price, you would add that to the cost (80 + 60 = 140). The other options reflect different percentages of the cost, not 75%.

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