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Every product on the market has a variety of costs built into it before it is ever put up for sale to a customer. There are costs of production, transportation, storage, advertising, and more. Each of these costs must bring in some profit at each stage: truckers must profit from transporting products, or they would not be in business. Thus, costs also include several layers of profits. The selling price of a product must take all of these costs( and built - in profits) into consideration. The selling price itself consists of a markup over the total of all costs, and it is normally based on a percentage of the total cost.
The markup may be quite high 90 percent of cost or it may be low. Grocery items in a supermarket usually have a low markup, while mink cost have a very high one. High markups, however, do not in themselves guarantee big profits. Profits come from turnover. If an item has a 50 percent markup and does not sell, there is no profit. But
A. ¥80,000
B. ¥75,000
C. ¥78,000
D. ¥79,995
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