A bookstore sells a textbook for $55. If the bookstore makes a profit of 35% on each sale, what does the bookstore pay the publisher for each book? Round answer to the nearest cent.
A) $40.74
B) $74.25
C) $35.75
D) $84.62

Question

Quizplus · Accepted Answer

To find the cost the bookstore pays the publisher, we need to use the formula: Cost = Price/(1+Profit Margin)
Profit Margin is 35%, or 0.35 in decimal form. 
So, Cost = $55/(1+0.35) = $55/1.35 = $40.74 (rounded to the nearest cent) 
Therefore, the bookstore pays the publisher $40.74 for each book. The best choice is A.

A Bookstore Sells a Textbook for $55