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CIPS Exam L4M5 Topic 6 Question 75 Discussion

Actual exam question for CIPS's L4M5 exam
Question #: 75
Topic #: 6
[All L4M5 Questions]

A supplier's mark-up on all products is 25%. Supplier's profit margin is...?

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Suggested Answer: A

LO 2, AC 2.1


by Veronika at Nov 18, 2024, 09:40 PM

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Raymon
2 months ago
This question is a real head-scratcher. I'm going to go with B) 30% just because it sounds more plausible than the others. Or maybe I should just roll the dice and pick randomly...
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Salena
2 months ago
I agree, 30% seems like a reasonable profit margin.
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Virgilio
2 months ago
I think it's B) 30%
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Viva
2 months ago
Definitely A) 20%. Anything higher than that and the supplier would be gouging their customers. 25% mark-up, 20% profit margin, simple math.
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Meaghan
1 months ago
No, the profit margin is actually 20% with a 25% mark-up.
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Elizabeth
1 months ago
B) 30%
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Alishia
1 months ago
Exactly, the profit margin is 20% because of the 25% mark-up.
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Marvel
2 months ago
A) 20%
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Bernardine
3 months ago
But if the mark-up is 25%, then the profit margin would be 30%
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Valda
3 months ago
I disagree, I believe the answer is A) 20%
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Laticia
3 months ago
D) 15% has to be the answer. I mean, who would sell stuff at a 75% profit margin? That's highway robbery!
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Torie
2 months ago
A) 20%
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Vanesa
2 months ago
B) 30%
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Rosendo
2 months ago
D) 15% has to be the answer. I mean, who would sell stuff at a 75% profit margin? That's highway robbery!
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Bernardine
3 months ago
I think the answer is B) 30%
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Kenneth
3 months ago
Gotta be C) 75%. I mean, if the mark-up is 25%, the profit margin has to be way higher than that, right? Anything less would be a rip-off!
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Maryann
2 months ago
C) 75%
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Zoila
2 months ago
B) 30%
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Octavio
3 months ago
A) 20%
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Ryan
3 months ago
I think the answer is B) 30%. You can't have a 25% mark-up and a 20% profit margin, that just doesn't make sense.
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Reena
2 months ago
Definitely, the mark-up and profit margin should align.
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Gerald
2 months ago
I think it's safe to say that the profit margin is 30% in this case.
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Jesus
2 months ago
Yeah, it wouldn't make sense for the profit margin to be lower than the mark-up.
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Jerlene
2 months ago
I agree, the answer is B) 30%.
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