Assume a company wishes to maintain a markup of 35% on a product with a

Question

Quizplus · Accepted Answer

To maintain a markup of 35% on a product with a cost of $30.00, we can use the formula:

selling price = cost + markup

We know that the markup is equal to 35% of the cost, which means:

markup = 0.35 x $30.00 = $10.50

So the selling price would be:

selling price = $30.00 + $10.50 = $40.50

Therefore, option B ($33.75) is not correct. Option C ($38.46) and option D ($43.90) are both higher than the correct answer.

The correct answer is option A ($40.50).

Assume a Company Wishes to Maintain a Markup of 35