Accounting Multiple Choice Question – 28 March 2020

The mark-up on an item which cost £500 and is sold for £625 is?

Select ONE answer:

1. 20%
2. 25% 
3. 33 1/3%
4. None of the above.

 

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct 
2. Correct – Mark-up (on cost) 2 Gross Profit as a percentage of cost price = (£625 – £500) / £500 = 25%.
3. Not correct
4. Not correct

 

 

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