Bellingham Suit Co. has received a shipment of suits that cost $200 each. If the company uses cost-plus pricing and applies a markup percentage of 60%, what is the sales price per suit?
A) $333
B) $320
C) $280
D) $500

Question

Quizplus · Accepted Answer

To calculate the sales price per suit using cost-plus pricing, we need to add the markup percentage to the cost per suit:

Markup = Cost x Markup Percentage

Markup = $200 x 60%

Markup = $120

Sales Price = Cost + Markup

Sales Price = $200 + $120

Sales Price = $320

Therefore, the sales price per suit is $320.