1. Choose a real or made up example of a company, and describe at least three variable cost the company has (1-3 sentences) 2. Choose a real or made up company, and describe at least three fixed costs the company has (1-3) sentences

The correct answer would be option C, 27%.

Explanation:

Difference between the Cost of the product and the Selling Price of that product is called the Markup on selling Price. In this example, a store keeper sells CDs at a price of $15. But the cost of each CD is $11, which means, he takes $4 profit on each CD sold. So the markup on selling price can be calculated as follows:

Markup on Selling Price = ( (Selling Price - Cost of the Product) / Selling Price) * 100

Markup on Selling Price = ( ($15 - $11) / $15 ) *100

Markup on Selling Price = ( $4 / $15 ) * 100

Markup on Selling Price =  0.27 *100

Markup on Selling Price = 27%