Johnson Technology specializes in graphic design and video production.In October 2014,the company incurred the following costs for providing services to one of its clients.
-Johnson Technology's contract with the client discloses a 20% profit margin on the cost incurred.Determine the profit earned by the company by providing services.
A)$3,500
B)$700
C)$4,200
D)$360

Question

Johnson Technology specializes in graphic design and video production.In October 2014,the company incurred the following costs for providing services to one of its clients.  
-Johnson Technology's contract with the client discloses a 20% profit margin on the cost incurred.Determine the profit earned by the company by providing services.
A)$3,500 
B)$700 
C)$4,200 
D)$360

Quizplus · Accepted Answer

The profit is calculated as 20% of the cost incurred. If the profit is $700, it implies that the cost incurred was $3,500 (since $700 is 20% of $3,500).

Johnson Technology Specializes in Graphic Design and Video Production