In mark-up pricing, if cost is 100 and markup is 40%, selling price is 140.

In mark-up pricing, if cost is 100 and markup is 40%, selling price is 140.

• A. £120
• B. £180
• C. £140
• D. £100

Answer: (C)

Markup pricing adds a percentage of cost to the cost to set the selling price. Here the cost is 100 and the markup is 40% of cost, so you add 40 to the cost, giving a selling price of 140. In formula terms, selling price = cost × (1 + markup rate) = 100 × 1.4 = 140. The other numbers reflect different markups: 120 would be a 20% markup, 180 would be an 80% markup, and 100 would be no markup at all.

Markup pricing adds a percentage of cost to the cost to set the selling price. Here the cost is 100 and the markup is 40% of cost, so you add 40 to the cost, giving a selling price of 140. In formula terms, selling price = cost × (1 + markup rate) = 100 × 1.4 = 140. The other numbers reflect different markups: 120 would be a 20% markup, 180 would be an 80% markup, and 100 would be no markup at all.