A Computer Sells for $995, Which Is Marked Up 35

question 101

Multiple Choice

A computer sells for $995, which is marked up 35% of the selling price. The cost of the computer is:

• A)$1,343.25
• B)$1,433.52
• C)$1,350.77
• D)$1,530.77
• E)None of these

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Definitions:

Purchase Price

The amount paid to acquire a good or service.

Supplier Costs

Expenses incurred for goods or services purchased from vendors, including the cost of materials, as well as any delivery or handling charges.

Economic Order Quantity

The optimal quantity of inventory to order that minimizes total inventory costs, including holding and ordering costs.

Optimum Order

The most efficient quantity of an item to order, minimizing costs and meeting demand.