If a plant is priced at $2.40 and the business targets a 25% profit, what is the wholesale cost?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the NOCTI Horticulture exam with flashcards and multiple choice questions. Each question features hints and answers for an effective study experience. Get exam-ready now!

Multiple Choice

If a plant is priced at $2.40 and the business targets a 25% profit, what is the wholesale cost?

Explanation:
When you price with a markup on cost, the selling price equals the wholesale cost plus 25% of that cost. That makes the selling price 1.25 times the wholesale cost. Set 2.40 = 1.25 × wholesale_cost and solve: wholesale_cost = 2.40 / 1.25 = 1.92. So the wholesale cost is $1.92. Check quickly: 1.92 × 0.25 = 0.48, and 1.92 + 0.48 = 2.40. If the wholesale cost were 1.80, the price would be 2.25; if 2.00, it would be 2.50; if 2.10, it would be 2.625. Only 1.92 yields the 2.40 selling price.

When you price with a markup on cost, the selling price equals the wholesale cost plus 25% of that cost. That makes the selling price 1.25 times the wholesale cost. Set 2.40 = 1.25 × wholesale_cost and solve: wholesale_cost = 2.40 / 1.25 = 1.92. So the wholesale cost is $1.92.

Check quickly: 1.92 × 0.25 = 0.48, and 1.92 + 0.48 = 2.40. If the wholesale cost were 1.80, the price would be 2.25; if 2.00, it would be 2.50; if 2.10, it would be 2.625. Only 1.92 yields the 2.40 selling price.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy