Question: This is calculated using the new equation for margin pricing: Cost + ( Margin Rate x Unit Selling Price ) = Unit Selling Price For

This is calculated using the new equation for margin pricing:
Cost +(Margin Rate x Unit Selling Price)= Unit Selling Price
For example, the supplier discovered that last year its margin as a percentage of sales was 1%, and this year the supplier would like it to be 20%. Using the same total cost of $50 as above would result in the supplier quoting a price of $62.50 in order to obtain the margin of 20% EXPLAIN STEPS IN HOW THIS ANSWER WAS OBTAINED

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