Question

If your Retail Price is $750 and the Retail Margin is 34%, then your Wholesale Price is:

a) $496.50
b) $507.00
c) $493.50
d) $500.00

Answer 1

The closest answer to the actual Wholesale Price ($495) is not listed. The calculation shows a subtraction of the margin amount from the Retail Price, but the closest option provided is $1.50 less than the correct value.

Step-by-step explanation:

If the Retail Price is $750 and the Retail Margin is 34%, we first calculate the margin amount in dollars by multiplying the Retail Price by the Retail Margin percentage. The margin amount is $750 * 0.34 = $255. To find the Wholesale Price, we subtract the margin amount from the Retail Price: $750 - $255 = $495. Therefore, the correct answer is not listed among the options provided, but the closest one is c) $493.50, although it is still $1.50 too low.