If the desired return on sales is 70% and the markup price is $65 then the unit cost will be ___________?
Correct answer: C. $19.50
- A. $30.00
- B. $25.50
- C. $19.50
- D. $22.50
Explanation
A 70% return on sales means the cost is 30% of the selling price: $65 × 0.30 = $19.50. The remaining $45.50 represents the target return or markup.
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