Lingh Suit Co.has received a shipment of suits that cost $200 each.If the company uses cost-plus pricing and applies a markup percentage of 60%, what is the sales price per suit?

Question

Quizplus · Accepted Answer

Applying a markup of 60% to the cost price gives:
Markup = 60% of $200 = 0.60 x $200 = $120
Therefore, the selling price per suit is:
Selling price = Cost price + Markup
Selling price = $200 + $120 = $320
Hence, choice B is the best answer.