M Studios Buys Cameras at a Unit Cost of $140

question 113

Multiple Choice

M Studios buys cameras at a unit cost of $140. Their operating expense is 40% per unit of the selling price, and their desired unit operating profit is 25% of the selling price. What is M Studios' rate of mark-up on selling price?

• A) 65%
• B) 22.75%
• C) 75%
• D) 25%
• E) 60%

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Definitions:

Suspected Allergens

Substances believed to cause allergic reactions.

Lancet

A small, sharp medical instrument used for making incisions, especially for taking blood samples.

Radioallergosorbent Test

A blood test used to detect specific IgE antibodies to determine the substances a person is allergic to.

Antibodies

Proteins produced by the immune system in response to antigens, capable of specifically binding to and neutralizing foreign invaders such as bacteria and viruses.