Solve the Problem

question 60

Multiple Choice

Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
-James Page works in a local music store where he sells guitars for $130.62 each. If he maintains a markup of 51.1% on selling price, what is the cost of a guitar to James?

• A)$197.37
• B)$63.87
• C)$66.75
• D)$194.49

Learn about the operational aspects of off-price and discount retailing.

Recognize the importance and methods of customer segmentation in retail.

Understand omnichannel retailing and the use of technology in personalizing customer experiences.

Understand the strategies and approaches category specialists use in customer service.

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Definitions:

Activity-based Costing

A methodology that assigns manufacturing overhead costs to products in a more logical manner based on the activities that incur costs.

Floral Bouquets

An arrangement of flowers, typically designed and wrapped for decorative or gifting purposes.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire plant or factory, applied to all production units equally.

Activity-based Costing

A costing method that allocates overhead costs to specific activities, providing more accurate product costing.