A company sells travel mugs online for $10.They purchase the mugs for $6 and charge the customers $2 for shipping and handling.The cost of product sold per mug is:

Question

Quizplus · Accepted Answer

The cost of product sold per mug includes the cost at which the company purchases the mug and any additional expenses incurred in making the product available to the customer.

Here, the cost of purchasing the mug is $6, and the additional expense incurred is the shipping and handling cost of $2 charged to the customer.

Therefore, the cost of product sold per mug is $6 + $2 = $8.

Option A, B, and D are incorrect because they do not consider the shipping and handling cost, which is an additional expense that needs to be added to the original cost of purchasing the mug.

A Company Sells Travel Mugs Online for $10