Company X sets price equal to cost plus 60%. Recently, Company X charged a customer a price of $42 for an item. What was the cost of the item to Company X?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 23E: Thebes Company had the following information: What is the markup based on cost of goods sold? a....
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Accounting 23

Company X sets price equal to cost plus
60%. Recently, Company X charged a
customer a price of $42 for an item.
What was the cost of the item to
Company X?
Transcribed Image Text:Company X sets price equal to cost plus 60%. Recently, Company X charged a customer a price of $42 for an item. What was the cost of the item to Company X?
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