Your professor stated that "markups":?

Question

a. should always be stated as a percentage of cost.

b. are a percentage of selling price--unless otherwise stated.

c. are never stated as a percentage of cost.

d. should never be stated in dollar amounts.

e. all of the above except B

Answer 1

Whose professor are we talking about?

And how do we at Yahoo Answers know what he stated?

Answer 2

Well, A and C are opposite of each other and can't both be right.  So you know it's not answer E.  You use the mark up to get to the selling price so it shouldn't be answer B.  This leaves A, C, or D.  The dollar amount doesn't really tell you very much.  The dollar amount will depend on both the mark up  and the cost.  So toss out D.  This leaves A or C.  You have to mark up from something and that is usually the cost.  So A must be the answer.