Answered

A seller buys an item from a manufacturer for $100 and sells it to a customer for $120. which of these terms describes this extra $20?

Acostb. pricec. markup

Verified Answer :

SKYBLUE1015

Markup: The amount added to the cost price of goods to cover overhead and profit.

Answer:


markup


Explanation:


sellers buy items from manufacturers and need a profit whenever they sell a product.  Therefore, they cannot allow the cost price to equal the selling price.  So they add an extra amount, called a markup, to the cost price to arrive at the selling price.

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