A Bookstore Sells a Textbook for $40

question 109

Multiple Choice

A bookstore sells a textbook for $40.30. If the bookstore makes a profit of 30% on each sale, what does the bookstore pay the publisher for each book? ( Hint: The retail price = the wholesale price + the markup.)

• A) $42
• B) $28
• C) $34
• D) $31
• E) $35

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Definitions:

Social Security Tax

Taxes levied on both employers and employees to fund the Social Security program, which provides retirement, disability, and survivor benefits.

Taxable Income

The amount of an individual's or corporation's income used to determine how much tax is owed to the government.

Marginal Tax Rate

The percentage of tax applied to your income for every tax bracket in which you qualify.

Average Tax Rate

The fraction of an individual's total income that is paid in taxes, calculated by dividing the total taxes paid by total income.