A firm charges $14 for a product. If the markup is 40%, then the fully allocated average cost is :?

Well everybody has correctly answered  b) $10, but nobody has shown their working clearly.  There's no point in posting and answering these plagiarised questions without explaining WHY the answer is what it is.

Retail price = $14

Markup =40% =0.4

Retail price = Cost * (1+Markup)

=>14 = Cost *1.4

=> Cost =14/1.4 = $10

The answer is : Option ( b ) 

1. The correct answer was: b. $10.00. 

It's the2nd option....Option B.

My Answer Is Option " B " .....

Presume cost is =100

Mark-up40%=40

Total selling price should be =140

In this case selling price is =14

So cost to be =14 x100/140

=10

My answer is option (B) $10.00 

b. is correct answer...............................................................

B10.................................................................................

The answer is  :    14 *40/56  =10

$10

 (100 *14)/140  =10 => b. $10.00