This is a simple algebra problem.
To determine price, you need to Have the cost of the product plus the markup equals the sales price.
We know the sales price and the markup, so we need to solve for the cost.
9,655= 1.42(x)
X=9,655/1.42
Answer:
$39,300
Explanation:
The computation of the net income is shown below:
= Sales - cost of good sold - other monthly expenses - depreciation expense
= $320,000 - $240,000 - $24,700 - $16,000
= $39,300
The cost of goods sold is computed below:
= December sales × cost of goods sold percentage
= $320,000 × 75%
= $240,000
All other information which is given is not relevant. Hence, ignored it
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