Estimated cost is $91,000 and desired gross margin is 35 percent. What selling price gives that margin?
Correct Answer
B) $140,000.
If margin is 35 percent, cost is 65 percent of price. $91,000 / 0.65 = $140,000.
Why This Is the Correct Answer
If margin is 35 percent, cost is 65 percent of price. $91,000 / 0.65 = $140,000.
Why the Other Options Are Wrong
Option A: $122,850.
$122,850. is below the supported result for margin calculation; it likely uses the wrong base, period, or account bucket.
Option C: $126,350.
$126,350. is below the supported result for margin calculation; it likely uses the wrong base, period, or account bucket.
Option D: $150,150.
$150,150. is above the supported result for margin calculation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Pricing Estimated money shelf: cost for markup, price for margin.
Reference Hint
Study anchor (closed-book): memorize Margin calculation from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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