Company A sets price equal to cost plus 60%. Recently, Company A charged a customer a price of $42 for an item. What was the cost of the item to Company A? a. $26.25 b. $42 c. $25.20 d. $67.20 e. $40.32

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Company A sets price equal to cost plus 60%. Recently, Company
A charged a customer a price of $42 for an item. What was the
cost of the item to Company A?
a. $26.25
b. $42
c. $25.20
d. $67.20
e. $40.32
Transcribed Image Text:Company A sets price equal to cost plus 60%. Recently, Company A charged a customer a price of $42 for an item. What was the cost of the item to Company A? a. $26.25 b. $42 c. $25.20 d. $67.20 e. $40.32
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