Discussion
Adding selling and distribution of 5 to that cost of production of 93.5 gives a total cost of
Answer: B
Correct answer: 98.5
\[ 93.5 + 5 = 98.5. \] Selling and distribution is given as an absolute figure here rather than a percentage, and adding it to the cost of production completes the total cost. Nothing further is added before the profit.
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