A company reports a profit margin of 30%. If the cost price of a product is $200

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Question: A company reports a profit margin of 30%. If the cost price of a product is $200, what is the selling price?

Options:

Correct Answer: $240

Solution:

Selling Price = Cost Price + Profit = 200 + (30% of 200) = 200 + 60 = $260.

A company reports a profit margin of 30%. If the cost price of a product is $200, what is the selling price?

A company reports a profit margin of 30%. If the cost price of a product is $200, what is the selling price?

Step 1: Identify the cost price of the product, which is $200.
Step 2: Understand that the profit margin is 30%. This means the profit is 30% of the cost price.
Step 3: Calculate 30% of the cost price. To do this, multiply the cost price ($200) by 0.30 (which is 30% in decimal form).
Step 4: Perform the calculation: 200 * 0.30 = $60. This is the profit.
Step 5: Add the profit ($60) to the cost price ($200) to find the selling price.
Step 6: Perform the addition: 200 + 60 = $260. This is the selling price.

Profit Margin – The percentage of profit made on the cost price of a product.
Selling Price Calculation – The process of determining the selling price by adding profit to the cost price.