Answer:
Option (C) is correct.
Explanation:
Given that,
Price of an item charged by the Rhine company = $280
Rhine company sets price = Cost + 40% of cost
Let the cost of an item to Rhine be x,
Hence,
Price = x + 40%(x)
$280 = x + 0.4x
$280 = 1.4x
x = $280 ÷ 1.4
= $200
Profit for Rhine = Price - cost
= $280 - $200
= $80
Therefore, the cost of the item to Rhine is $200.
