An inventory item was purchased for $3.00. Before it was finally sold it was given an initial markup of $1.00, followed by an additional markup of 50 cents, and then a markup cancellation of 50 cents, and finally a markdown of 40 cents. It was then sold for:
A) $3.00
B) $3.50
C) $3.60
D) $4.00

Question

Quizplus · Accepted Answer

The item's initial cost was $3.00. With the first markup of $1.00, its cost increased to $4.00. 
The second markup of 50 cents brought the cost to $4.50. 
The markup cancellation of 50 cents lowered the cost to $4.00. 
Finally, the markdown of 40 cents brought the cost down to $3.60. Therefore, the item was sold for $3.60.

An Inventory Item Was Purchased for $3