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Selling price is obtained by adding to total cost the

  • A.administration overhead
  • B.selling and distribution overhead
  • C.escalation allowance
  • D.profit margin

Answer: D

Correct answer: profit margin

Total cost is the last of the cost figures, and the selling price is what is charged for the item - so what separates them is the profit. Every overhead has already been absorbed by this point, which is why adding one of them again is the error the distractors offer.

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