Brain Teasers & Mental Math
A retailer buys a product for $60 and sells it for $80. What is the gross margin %? The markup %? Why do they differ?
Model answer
Gross margin = 25%; markup = 33.3%.
Profit per unit = 80 − 60 = $20. Margin divides by PRICE: 20/80 = 25%. Markup divides by COST: 20/60 = 33.3%.
They differ because the base differs…
The full, human-reviewed answer is in the bank.
Sign up free and Daily 10 serves you 10 questions a day from all 1,500+ — or go Pro for unlimited reps.
More from Brain Teasers & Mental Math
- You roll one fair six-sided die. What is the probability you roll a number greater than 4?
- Flip a fair coin twice. What is the probability of getting at least one head?
- Draw one card from a standard 52-card deck. What is the probability it is a face card (J, Q, or K)?
- Draw one card from a 52-card deck. What is the probability it is a heart OR a king?
- Roll two fair dice. What is the probability the two dice show the same number (a double)?
- A test for a disease is 99% accurate (99% sensitivity and 99% specificity). The disease affects 1 in 10,000 people. You test positive. What is the probability you actually have it?