Quick Markup & Discount Review

Markup is the same as _______________.

• profit margin

• gross profit

• net price

Markup is calculated in __________________.

• dollar amount

• percentage

• both dollar amount and percentage

Net price is the price a customer pays __________ the discount has been applied.

• before

• after

Keystone markup is a strategy designed to give sellers a __________ profit margin.

• 50%

• 100%

Keystone markup is a strategy when markup is _____________.

• twice the cost

• half the cost

What is the difference between profit margin and gross profit?

• Profit margin describes the amount of profit earned from selling ONE unit (or each unit). Gross profit describes the profit made from selling ALL units.

• Gross profit describes the amount of profit earned from selling ONE unit (or each unit). Profit margin describes the profit made from selling ALL units.