Travers Company sets prices equal to cost plus 55%.Recently,Travers charged a customer a price of $60 for an item.What was the cost of the item to Travers?
A)$25.20
B)$38.71
C)$40.32
D)$42.00

Question

Quizplus · Accepted Answer

Let's assume the cost of the item to Travers is x.
According to the given information, Travers sets prices equal to cost plus 55%. So, the selling price of the item is:

Selling Price = Cost + 55% of Cost
60 = x + 0.55x
60 = 1.55x
x = 38.71

So, the cost of the item to Travers was $38.71.
Therefore, the correct answer is B.

Travers Company Sets Prices Equal to Cost Plus 55