A buyer and a supplier plan to sign a contract with cost-plus arrangement. If the cost base is $350 and the markup component is 11% then the invoice price will be...

A buyer and a supplier plan to sign a contract with cost-plus arrangement. If the cost base is $350 and the markup component is 11% then the invoice price will be…

A buyer and a supplier plan to sign a contract with cost-plus arrangement. If the cost base is $350 and the markup component is 11% then the invoice price will be…
A . 393.26
B. 388.5
C. 368.5
D. 362

Answer: B

Explanation:

Markup is the percentage between the profit and costs. The cost is $350, markup is 11%. So final price is: 350 + 350×0.11 = 388.5

Reference: CIPS study guide page 177

LO 3, AC 3.3