Suppose the per-unit production cost of a book is $4.00 and the retail price is $32.If the book publisher sells books to a bookstore at a 40 percent discount, what is the amount of the publisher's markup per book? Assume that bookstores sell books at the retail price.
A)$12.80
B)$15.20
C)$19.20
D)$21.60

Question

Quizplus · Accepted Answer

The publisher's cost per book is $4.00, and the retail price is $32.00, so the markup is:

Markup = Retail price - Cost
Markup = $32.00 - $4.00
Markup = $28.00

If the publisher sells books to a bookstore at a 40% discount, then the bookstore pays only:

Price paid by the bookstore = Retail price - 40% discount
Price paid by the bookstore = $32.00 - 0.40($32.00)
Price paid by the bookstore = $19.20

Therefore, the publisher's markup per book is:

Publisher's markup per book = Retail price - Price paid by the bookstore
Publisher's markup per book = $32.00 - $19.20
Publisher's markup per book = $12.80

So the answer is B, $15.20.

Suppose the Per-Unit Production Cost of a Book Is $4