An item that cost $120 is to be sold for a price that will yield a gross profit ratio of 20%. The selling price should be: A. $96 B. $144 C. $150 D. $600

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 3EA: A product has a sales price of $150 and a per-unit contribution margin of $50. What is the...
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An item that cost $120 is to be sold for a price that will yield a gross
profit ratio of 20%. The selling price should be:
A. $96
B. $144
C. $150
D. $600
Transcribed Image Text:An item that cost $120 is to be sold for a price that will yield a gross profit ratio of 20%. The selling price should be: A. $96 B. $144 C. $150 D. $600
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