Mark-up adds profit percentage to cost price for selling price

Steps:

• Identify cost price as the base amount paid for goods.
• Calculate mark-up as a percentage of the cost price to determine profit margin.
• Add the mark-up amount to the cost price.
• Result is the selling price that covers costs and profit.

Why A is correct:

• Mark-up is defined as adding a percentage (profit) to the cost price to arrive at the selling price, per standard pricing formula: Selling Price = Cost Price + (Cost Price × Mark-up %).

Why the others are wrong:

• B: Deducting from cost price reduces the price below costs, which loses money.
• C: Deducting from selling price confuses the process; mark-up starts from cost, not selling price.
• D: Duplicate of C; incorrectly reverses the mark-up direction.

Final answer: A