Clock Tickers, a small retailer of a quality alarm clock, sells its product for $180. If Clock Tickers adheres to pricing based on a 35% markup of cost, the firm's product costs are approximately
A) $63.
B) $98.
C) $133.
D) $155.

Question

Quizplus · Accepted Answer

To find the cost of the product, we need to work backwards from the selling price of $180 and the markup percentage of 35%.

Let's call the cost of the product "x". We know that Clock Tickers marks up the cost by 35%, so they sell the product for 1.35 times the cost:

1.35x = $180

To solve for x, we divide both sides by 1.35:

x = $133.33

So the product costs approximately $133.33, which is closest to answer choice C, $133.

Clock Tickers, a Small Retailer of a Quality Alarm Clock