If the sales price of a DVD is $30, and the markup on the cost is 50%, what is the cost of producing the DVD?

Question

asked Jul 4, 2024 139k views

1 Answer

Oiva Eskola · Answer 1 · 2024-07-08T22:17:29+0000

The cost of producing the DVD is $20.

The sales price of a DVD is $30 and the markup on the cost is 50%. To find the cost of producing the DVD, we can use the formula:

Cost = Sales Price / (1 + Markup%)

Plugging in the given values, we get:

Cost = $30 / (1 + 0.50) = $30 / 1.50 = $20

Therefore, the cost of producing the DVD is $20.