A Large Supermarket Chain Purchases a Box of Cereal from a Food

question 211

Multiple Choice

A large supermarket chain purchases a box of cereal from a food wholesaler. If the supermarket chain uses a markup of 20 percent on its selling price of $2.85, what is the price the supermarket chain paid the food wholesaler?

• A) $2.12
• B) $2.28
• C) $2.45
• D) $2.55
• E) $2.67

---

Definitions:

Annual Rate of Inflation

The percentage increase in the price level of goods and services in an economy over a year.

Decade

A period of ten years.

Effective Annual

Referring to an interest rate or return on investment that accounts for the effects of compounding over a year.

Rate of Sales Growth

The increase in sales over a specific period of time, typically measured as a percentage.