Question

Dr. Leonard Bernstein marks up the cost of the software by 60% of the selling price. If his costs for a project for a local bank total $1,200,000, what selling price should Leonard put for the software?

b. $1,875,000
c. $1,333,333.33
d. $2,400,000
e. $1,200,000

Answer 1

To find the selling price, Dr. Leonard Bernstein should put for the software, we need to calculate the markup cost. The markup cost is given as 60% of the selling price. Let's assume the selling price is S. we need to calculate the cost of the markup. The selling price should be $3,000,000.

Step-by-step explanation:

To find the selling price that Dr. Leonard Bernstein should put for the software, we need to calculate the markup cost. The markup cost is given as 60% of the selling price. Let's assume the selling price is S. According to the question, the costs for the project total $1,200,000.

The cost is equal to the selling price minus the markup cost. $1,200,000 = S - 0.6S

Simplifying the equation, we get:

0.4S = $1,200,000 S

= $1,200,000 / 0.4

= $3,000,000

Therefore, the selling price that Leonard should put for the software is $3,000,000.