Which formula represents mark-up pricing?

Mark-up pricing refers to the strategy where a specific percentage is added to the cost of a product to determine its selling price. The correct formula for mark-up pricing is the percentage added divided by the cost price. This approach ensures that the selling price is calculated based on what it costs the business to produce or purchase the product.

Using this formula allows businesses to account for their costs while also determining how much they want to earn above those costs. When calculating the mark-up as a percentage of the cost price, businesses can set prices strategically to achieve desired profit margins while remaining competitive in the market.

Other formulas provided do not accurately represent mark-up pricing because they either focus on sales price or revenue rather than the cost price, which is essential for determining the mark-up percentage in pricing strategies.