The selling price of the item is $5.50
A buyer's cost to acquire a good or service is known as the selling price. This pricing strategy may differ based on what buyers are willing to pay, what the seller will accept, and how competitive the price is in relation to those of competing companies in the market. It is important to figure out your average selling price because it enables you to keep an eye on market trends and make predictions. It can be a great way to decide on a pricing strategy if you're a start-up manufacturer.
Given:
Cost price = $2.20
Profit margin = 40% = 0.40
So, the selling price is calculated as:
$2.20/0.40 = $5.50
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