Question

Calculate the gross margin (markup

rate) for a skillet that cost the store $20
and that was then sold for $30.
A. 60%
C. $10
B. 50%
D. 33%
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Answer 1

D. 33%.

Explanation:

The gross margin (markup rate) can be calculated as follows:

Gross margin = (selling price - cost price) / selling price

In this case, the cost price of the skillet is $20 and the selling price is $30, so:

Gross margin = ($30 - $20) / $30

= $10 / $30

= 0.33 or 33%

Therefore, the answer is D. 33%.