Question

If the markup is 80% and the selling price is $21.60, what is the cost to the store?

Answer 1

$12

Explanation:

Let p be the store's cost (cost to buy the product wholesale).

Then the selling price is p + markup, or

p + 0.80p = 1.80 p

and this comes to $21.60.

Dividing $21.60 by 1.80 results in p = $12.

The cost to the store is $12.