Question

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?

Answer 1

The cost of producing the DVD is $20.

Step-by-step explanation:

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.