Check your understanding

Answer all 5 questions, then check your answers. You need 4 correct to pass and unlock your certificate. You can try as many times as you like.

Question 1 of 5A product costs $8 and sells for $12. What is the markup?

33%50%67%4%

Question 2 of 5For the same product (cost $8, price $12), what is the profit margin?

33%50%25%150%

Question 3 of 5Fixed costs are $300 a month, the price is $25 and the variable cost per unit is $10. What is the break-even point?

12 units30 units20 units15 units

Question 4 of 5Why should you include your own time in your costs?

It makes prices look higherOtherwise your profit is overstated and you may be working for freeThe law requires itCustomers ask for it

Question 5 of 5Value-based pricing sets prices according to…

The lowest competitor priceThe cost of materials onlyThe value the customer receivesA random amount

You need 4 out of 5 to pass.