Lingh Suit Co

question 100

Multiple Choice

Lingh Suit Co.has received a shipment of suits that cost $200 each.If the company uses cost-plus pricing and applies a markup percentage of 60%, what is the sales price per suit?

• A)$333
• B)$320
• C)$280
• D)$500

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Definitions:

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax, varying by country and sometimes by the size or type of business.

Enterprise Multiple

A ratio used to determine the value of a company that takes into account its debt and equity, calculated by dividing the enterprise value by EBITDA.

EBIT

Known as Earnings Before Interest and Taxes, this financial gauge calculates a firm's profitability without considering interest and income tax charges.

Average Collection Period

The average number of days it takes for a company to collect payments from its customers, a measure of the efficiency of its credit policies.