If the target selling price is $120 and the target profit margin is a 40 per cent mark-up on cost, what is the target cost?
A) $48
B) $72
C) $85.70
D) $34.30

Question

Quizplus · Accepted Answer

To find the target cost, we first need to find the cost that includes the 40% mark-up.

Let C be the cost. Then the selling price can be expressed as:

Selling Price = Cost + 40% of Cost
$120 = C + 0.4C
$120 = 1.4C
C = $85.70

Therefore, the target cost is $85.70.

If the Target Selling Price Is $120 and the Target