Which term represents profit added to the production cost?

Which term represents profit added to the production cost?

• A. Unit Cost
• B. Markup
• C. Bleed
• D. Imposition

Answer: (B)

Markup is the amount added to the production cost to cover overhead and earn a profit, and it sets the selling price. It’s typically expressed as a percentage of the cost, so you take the cost to produce an item and apply the markup to arrive at the price a customer pays. For example, if producing an item costs $50 and the markup is 20%, the selling price would be $60. This concept is distinct from unit cost (which is just the cost to make one unit, without any profit), bleed (a printing term for extending artwork beyond the trim), and imposition (how pages are arranged on a press sheet).

Markup is the amount added to the production cost to cover overhead and earn a profit, and it sets the selling price. It’s typically expressed as a percentage of the cost, so you take the cost to produce an item and apply the markup to arrive at the price a customer pays. For example, if producing an item costs $50 and the markup is 20%, the selling price would be $60. This concept is distinct from unit cost (which is just the cost to make one unit, without any profit), bleed (a printing term for extending artwork beyond the trim), and imposition (how pages are arranged on a press sheet).