Question

Need help knowing how to do this kind of work

Answer 1

In order to calculate the gross margin, we can use the formula below:

`gross=(net-cost)/(net)`

If the gross margin is 60% = 0.6 and the cost per item is $8, the income per item sold is:

`\begin{gathered} 0.6=(net-8)/(net)\\ \\ net-8=0.6net\\ \\ 0.4net=8\\ \\ net=(8)/(0.4)=20 \end{gathered}`

Therefore the sticker price is $20 (correct option: D)