Golf Global Company sells 1,000 shirts annually at a price of $35 each. If the company's pricing policies adhere to a 40 percent markup of selling price, the cost of each shirt is

Question

Quizplus · Accepted Answer

The cost of each shirt is calculated by subtracting the markup percentage from 100% and then applying that percentage to the selling price. A 40% markup on selling price means the cost represents 60% (100% - 40%) of the selling price. Therefore, the cost is 60% of $35, which is $21 ($35 * 0.6 = $21).

Golf Global Company Sells 1,000 Shirts Annually at a Price