🎴 Flashcard Mode
Mathematical Applications in Business and Finance
Card1 / 15
Mastered0
Review0
QuestionClick to flip
A company sells a product for $100. If the company's profit margin is 20%, what is the cost of producing the product?
AnswerClick to flip back
A
$80
💡 Explanation:
Profit = Selling Price - Cost Price. Since the profit margin is 20%, the profit is 20% of the selling price, which is $100 * 20% = $20. Therefore, the cost of producing the product is $100 - $20 = $80.