Using the factor method with data given, what is the calculated selling price if the factor is 3.37?

To determine the selling price using the factor method, you multiply the cost price by the designated factor. In this case, the factor is 3.37.

If you're provided a cost price, you would compute the selling price by applying the formula:

Selling Price = Cost Price × Factor

For instance, if the cost price were roughly $3.14, you would calculate the selling price as follows:

Selling Price = $3.14 × 3.37 = $10.58

This calculation shows that the selling price based on the factor of 3.37 and an implied cost results in $10.58. This approach clearly illustrates how the factor method allows you to determine a selling price that accounts for costs and desired profit. Understanding the multiplier’s role is critical in pricing strategies, ensuring businesses cover their costs and achieve desired profitability levels.