Question

If the markup is 20% and the selling price is $45.00, what is the initial price

Answer 1

`(45)/(120)=(x)/(100)\\x=37.50`

Answer 2

Given data:

markup = 20 %

selling price = $45.00

Initial price = ?

Solution:

As we now Selling price = 100% initial cost + 20% of initial cost

$45.00 = 120%

120% = $45.00

1% = 45/120

= 0.375

100% initial cost = 0.375 * 100 = 37.5

Initial cost = 37.5