The Golf Global Company sells 1 000 shirts annually at a price of R35 each.If the company's pricing policies adhere to a 40% mark-up of selling price, the cost of each shirt is:
A)R14.
B)R21.
C)R28.
D)R32.

Question

Quizplus · Accepted Answer

The selling price is R35, and the mark-up is 40% of the selling price. To find the cost price, we calculate: Cost Price = Selling Price / (1 + Mark-up Percentage) = R35 / 1.4 = R25. Therefore, the cost of each shirt is R21.

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