Question

1.3.19

The selling price of a refrigerator, is $677.50. If the markup is 25% of the dealer's cost, what is the dealer's cost of the refrigerator?​

Answer 1

Answer: $542

Explanation:

Given the following :

Selling price of refrigerator = $677.50

Markup = 25% of dealers' cost

Dealers' cost of refrigerator =?

Selling price = Dealers' cost + markup

Markup = 25% of dealers' cost

Let dealers' cost = d

Hence,

Selling price = d + 25% of d

Selling price = d + 0.25d

Selling price of refrigerator = $677.50

Then,

$677.50 = d + 0.25d

$677.50 = 1.25d

d = $677.50 / 1.25

d = $542