A manufacturer produces 200 units of a product at a total cost of $1,000.If the manufacturer wants to make a markup of 10 percent,the price per unit would be ________.
A) $6.00
B) $5.50
C) $5.00
D) $4.50
E) $0.50

Question

Quizplus · Accepted Answer

To find the price per unit, we need to divide the total cost by the number of units:

Price per unit = Total cost / Number of units
Price per unit = $1,000 / 200
Price per unit = $5

To add a markup of 10 percent, we need to multiply the price per unit by 1.10:

Price per unit with markup = Price per unit x 1.10
Price per unit with markup = $5 x 1.10
Price per unit with markup = $5.50

Therefore, the price per unit with a 10% markup is $5.50, which corresponds to choice B.

A Manufacturer Produces 200 Units of a Product at a Total