The production cost of an automobile component is $45. The producer takes a 10 percent markup and sells the product to the wholesaler. What is the wholesaler's cost?
A) $45
B) $5
C) $10
D) $50
E) $60

Question

Quizplus · Accepted Answer

10% markup on $45 is $4.50 (10/100 * 45 = 4.5)
So, the selling price to the wholesaler is $49.50 ($45 + $4.50)
Therefore, the wholesaler's cost is $49.50.

The Production Cost of an Automobile Component Is $45