What is the mark-up profit percentage earned by the supplier on this transaction?

A supplier can produce a product for $160. The supplier sells the product to their client for $240, making a profit before tax of $80 on the transaction.

What is the mark-up profit percentage earned by the supplier on this transaction?
A . 33%
B . 159%
C . 50%
D . 67%

View Answer

Answer: C

Explanation:

The mark-up percentage is calculated as the profit divided by the cost of production, then multiplied by 100 to convert it into a percentage.

Calculation:

(

80

/

160

)

×

100

=

50

%

(80/160)×100=50%

Thus, the supplier’s mark-up percentage is 50%, as per standard pricing calculations used in procurement.