Company B sets price equal to cost plus 75%. If Company B charged a customer $70 for an item, what was the cost of the item to Company B? a. $35.00 b. $40.00 c. $45.00 d. $122.50

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...
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Company B sets price equal to cost plus 75%. If Company B charged a customer
$70 for an item, what was the cost of the item to Company B?
a. $35.00
b. $40.00
c. $45.00
d. $122.50
Transcribed Image Text:Company B sets price equal to cost plus 75%. If Company B charged a customer $70 for an item, what was the cost of the item to Company B? a. $35.00 b. $40.00 c. $45.00 d. $122.50
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