which of the following statements best describes the difference between markup and margin? a. markup is a…

which of the following statements best describes the difference between markup and margin? a. markup is a term used to describe profit while margin is a term used to describe loss. b. markup is a term used to describe loss while margin is a term used to describe profit. c. markup relates profit to selling price while margin relates profit to cost. d. markup relates profit to cost while margin relates profit to selling price.

which of the following statements best describes the difference between markup and margin? a. markup is a term used to describe profit while margin is a term used to describe loss. b. markup is a term used to describe loss while margin is a term used to describe profit. c. markup relates profit to selling price while margin relates profit to cost. d. markup relates profit to cost while margin relates profit to selling price.

Answer

Answer:

D. Markup relates profit to cost while margin relates profit to selling price.

Brief Explanations:

Markup is calculated as $\frac{\text{Profit}}{\text{Cost}}$, and margin as $\frac{\text{Profit}}{\text{Selling Price}}$.