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A profit calculated by adding a percentage to the costs of production is called:  A. Mark-up  B. Breakeven.  C. Margin.  D. Mark-down

Question

A profit calculated by adding a percentage to the costs of production is called:  A. Mark-up  B. Breakeven.  C. Margin.  D. Mark-down

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Solution

The correct answer is A. Mark-up. This term refers to the amount added to the cost price of goods to cover overheads and profit.

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