The current selling price for the Pluto, a mid-sized car, is $19,000.For next year it is anticipated that Pluto will have a $12,000 cost base.What is its prospective selling price, using cost-plus pricing, if the company desires a markup component of 15 percent?

Question

Quizplus · Accepted Answer

Cost-plus pricing formula: Selling price = cost base + (markup percentage x cost base)
Cost base for next year = $12,000
Markup percentage = 15%
Selling price = $12,000 + (0.15 x $12,000) = $13,800. Therefore, the answer is B.

The Current Selling Price for the Pluto, a Mid-Sized Car