Set Up an Equation That Can Be Used to Solve

question 57

Multiple Choice

Set up an equation that can be used to solve the problem. Solve the equation and answer the question asked.
-Inclusive of a 7.5% sales tax, a diamond ring sold for $2042.50. Find the price of the ring before the tax was added. (Round to the nearest cent, if necessary.)

• A) $1889.31
• B) $1900
• C) $2195.69
• D) $153.19

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Definitions:

Period Cost

Costs unrelated to the direct production process, recognized as expenses in the period they happen, encompassing sales, general, and administrative expenditures.

Plant Manager

A professional who oversees all operations of a manufacturing facility, including personnel, production processes, and budget management.

Salary

A fixed regular payment, typically expressed as an annual amount, made by an employer to an employee, especially a professional or white-collar worker.

Product Cost

The total expense incurred to produce a product, including costs directly tied to manufacturing such as raw materials and labor, differentiated by highlighting its importance in pricing and profitability analysis.