Question

Selling price is $732.50 if the markup is 25% what is the cost

Answer 1

$586.00

Explanation:

Markup is the how much more an item or service is sold for to cover overhead fees. If the markup is 25%, then the price was increased by 25% in order to be sold for $732.50. We can set up a proportion to represent this where c is the cost.

`(732.5)/(1.25) = (c)/(1.00)`

Cross-multiply.

1.25c = 732.5

c = 586

So, the cost of the item was $586.00