Jamie Corporation had the following information:
- What would be the price for a product that has a cost of $500, assuming that the markup is based on cost of goods sold?
A) $834
B) $625
C) $708
D) $2,000

Question

Jamie Corporation had the following information: 
-  What would be the price for a product that has a cost of $500, assuming that the markup is based on cost of goods sold?
A) $834 
B) $625 
C) $708 
D) $2,000

Quizplus · Accepted Answer

The markup is based on cost of goods sold, so the price is equal to the cost plus the markup. The markup is 33.4%, so the price is $500 + (0.334 * $500) = $667.

Jamie Corporation Had the Following Information