The Production Cost of an Automobile Component Is $45

question 118

Multiple Choice

The production cost of an automobile component is $45. The producer takes a 10 percent markup and sells the product to the wholesaler. What is the wholesaler's cost?

• A) $45
• B) $5
• C) $10
• D) $50
• E) $60

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, with rights to own property, incur debt, sue and be sued.

Ownership Right

A legal right that confers the possession of assets and the benefits that come from owning them.

Stockholder

An individual or entity that holds one or more shares of stock in a public or private corporation, thus owning a portion of the company.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.