Business I / Pricing Strategies
Practice question · Estimate

A product costs 60€ to make and sells with a 25% markup on cost. Set the slider to its price in €.

Estimate on a scale from 60€ (60) to 100€ (100).

Hints
  1. p=60(1+0.25)p = 60 \cdot (1 + 0.25).
  2. A quarter of 60 is 15.
Show the answer

75 (answers within ±1.5 count)

Why

p=601.25=75p = 60 \cdot 1.25 = 75€. Note the asymmetry: a 25% markup on cost is only a 20% margin on price, a classic interview trap.

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