Question

Sheridan Company has received a shipment of suits that cost $140 each. If the company uses cost-plus pricing and applies a markup percentage of 60%, what is the sales price per suit?

A. $417.
B. $400.
C. $350.
D. $625 .

Answer 1

Selling price= $224

Step-by-step explanation:

Giving the following information:

Unitary purchase cost= $140

Mark-up percentage= 60%

To calculate the selling price per unit, we need to use the following formula:

Selling price= unitary cost*(1 + mark-up)

Selling price= 140*1.6

Selling price= $224