A product costing $350, less 30%, 20%, and 10%, sells to allow for overhead expenses of 30% of the selling price. What is the break-even price?
A) $252.00
B) $255.78
C) $266.40
D) $270.90
E) $291.90

Question

Quizplus · Accepted Answer

The correct answer is A because the break-even price is $252.00. The cost of the product is $350, less 30%, 20%, and 10%, which is $350 - $105 - $70 - $35 = $140. The selling price is $140 + 30% of $140 = $182. The break-even price is $182 / 0.7 = $252.00.

A Product Costing $350, Less 30%, 20%, and 10%, Sells