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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? a. $26.25 b. $42

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? a. $26.25 b. $42

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 1PA: When prices are rising (inflation), which costing method would produce the highest value for gross...
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What was the cost of item

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? a. $26.25 b. $42
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? a. $26.25 b. $42
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